Frontline Ltd. (Frontline) and Overseas Shipholding Group Inc. (OSG) have today signed an agreement with Osprey Maritime Ltd. (Osprey) to acquire the two VLCCs “Golar Edinburgh” and “Golar Dundee”. The agreement is signed on behalf of a joint venture company to be owned 51% by Frontline and 49% by OSG.

The two vessels, which are 302,500 dwt, are both built in 1993 and have double side structure. The purchase price for the vessels is set to USD 53 million each. The two vessels will be delivered to the new buyer in the 1st quarter 2001. According to the contract the buyer will in addition receive any T/C earnings in excess of USD 25,000 from January 1 until delivery.

Since Frontline is defined as related party to Osprey the deal is subject to final approval by an extra-ordinary Osprey shareholders’ meeting. Such a meeting is scheduled to be held early February 2001. Frontline’s and OSG’s purchase of the two vessels secures continued employment of the two vessels in the Tankers International Pool. The deal further confirms the good business relationship between the partners in Tankers International.

Hamilton, Bermuda

28 December, 2000