Frontline Ltd. (“Frontline”) has entered into a contract with Jiangsu Rongsheng Heavy Industries Group Co. Ltd. in China for delivery of two 153.000 dwt Suezmax newbuildings. The vessels will be delivered in November 2008 and February 2009. Frontline has also secured options for further 2 + 2 similar Suezmax newbuildings. The contract price for the newbuildings is in excess of USD 15 million lower than indicated price level for 2006 delivered tonnage.
The ordering of the tonnage has been done as a combination of a wish to renew the fleet, and opportunistic investment approach with great flexibility. The ordering confirms Frontlines position as a leading operator of quality Suezmax tonnage in addition to its position as the world’s largest operator and owner of VLCCs.
July 24, 2006
The Board of Directors