Frontline – Acquisition of Six VLCCs Under Construction

Frontline Ltd. recently announced that it has entered into an agreement for the acquisition through resale of six latest generation ECO-type VLCC newbuilding contracts.(Logo quoted from Yahoo’s image)
The six VLCCs are currently under construction at the Hyundai Heavy Industries (“HHI”) shipyard in South Korea and are being acquired for an aggregate purchase price of $565.8 million, including an estimated $25.7 million in additions and upgrades to the standard specifications.
The vessels are designed to operate on different fuels, including Biofuel, have the potential to be converted or retrofitted to consume fuel like LNG or Ammonia and consequently there is an ability to cut CO2 emissions to zero when technology, logistics and the regulatory framework allows for it.
The newbuildings will also be fitted with Exhaust Gas Scrubber technology, high-end Anti Fouling systems, equipped with Digital Energy Performance solutions as well as compliant with specific Exxonmobil lightering requirements to allow for maximum trading flexibility.
The delivery schedule is very attractive with five vessels delivering during 2022 starting in Q1 and the last vessel in Q1 2023.
The payment profile for this transaction means that the largest portion of the instalments on each vessel will be made on delivery of each vessel. Frontline will meet the financing of this acquisition with existing borrowing facilities and will establish long term financing closer to delivery of the vessels.
(IRuniverse)
Related articles
- 08/02/2024 October 9 (Wednesday), 4th Circular Economy Symposium in TOKYO
- 03/15/2024 The 3rd Circular Economy Symposium in TOKYO on April 4th, Thursday
- 10/11/2023 October 30 (Mon) 2nd Circular Economy Symposium in TOKYO
- 10/28/2021 Pakistan Accuses US-India "Collusion" -Intertwined US-China & Indo-Pakistani Confrontation
- 10/25/2021 Chuck Kawakami’s Eye (#12) -Better to Look a Little Carefully as to Whether the Low Yen will Continue for a Long Time
- 10/25/2021 Cabinet Decision on the 6th Strategic Energy Plan-Nuclear Power Plant Discussion that was not Deeply Dug
- 10/23/2021 Imminent COP26-All Making a Rush Declaration of Carbon Neutral
- 10/21/2021 Kurdish Power Strengthens in Parliament as a Result of Iraqi General Election
- 10/20/2021 The Soaring Price of Natural Gas is An Opportunity-Azerbaijan to Increase Exports to Europe
- 10/13/2021 Can the Move to Improve Relations between Syria and Jordan be a Loophole from US sanctions?