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News Breaks
July 24, 2014
07:14 EDTFRO, SFLFrontline announces termination of charter-in contracts of VLCCs
Frontline (FRO) has agreed with Ship Finance International (SFL) to terminate the long term charter parties for the 1999 built VLCCs Front Opalia, Front Comanche and Front Commerce and Ship Finance has simultaneously sold the vessels to unrelated third parties. The charter parties are expected to terminate in Q4. The decision to terminate the long term charter parties was taken in view of the required investment to take the vessels through the 15 year special survey. Frontline has agreed an aggregate compensation payment to Ship Finance of approximately $58.8M for the early termination of the charter parties, of which approximately $10.5M will be paid upon termination and the balance will be recorded as notes payable, with similar amortisation profiles to the current lease obligations, with reduced rates until December 2015 and full rates from 2016. As of June 30, the company has capital lease obligations to Ship Finance of $101.5M and $608.3M for these three vessels and the remaining 12 VLCCs and five Suezmax tankers, respectively.
News For FRO;SFL From The Last 14 Days
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October 1, 2014
08:47 EDTFROFrontline announces VLCC Chartering joint venture with Tankers International
Frontline and Tankers International announced the formation of a new company, VLCC Chartering, which aims to create a larger fleet with more flexibility and more options for cargo owners and a single point of contact to access these benefits; to reduce voyage related expenses and thereby improve the net earnings of the Very Large Crude Carriers operated by both owning companies through optimization of voyages; and to reduce carbon emissions as a direct consequence of using less fuel for cargo movements through fleet optimization. VLCC Chartering will have access to the combined fleets of Frontline and the TI Pool and will primarily identify the right ship for each cargo offered and on that basis select one ship to bid taking into consideration operational factors. By reducing the fuel wasted by sailing too far or too fast to load a cargo, vessel net earnings can be improved by reducing bunker consumption, the companies said. It is intended that the Company will commence operation on October 6 from the existing offices of Frontline Management AS and TI.

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