HAMILTON, Bermuda, June 28, 2006 (PRIMEZONE) — Frontline has as reported in the Company’s First quarter report ordered four VLCC newbuildings at Jignan Shipyard in China for delivery 2009 and onwards.
Two of these originally newbuilding contracts have in the second quarter been sold to third party including an element of profit. Frontline has subsequently to this sale entered into further two newbuilding contracts including an option for an additional two newbuildings.
Frontline will after this have the following VLCC newbuilding programs:
Ship Yard Delivery ---- ---- -------- VLCC newbuilding Nantong Cosco Khi Ship Engineering 2006 VLCC newbuilding Nantong Cosco Khi Ship Engineering 2006 VLCC newbuilding Jiangnan Shipyard, PRC 2009 VLCC newbuilding Jiangnan Shipyard, PRC 2009 VLCC newbuilding Jiangnan Shipyard, PRC 2010 VLCC newbuilding Jiangnan Shipyard, PRC 2010 Option for 2 VLCC newbuildings Jiangnan Shipyard, PRC 2010/2011
Frontline has also increased their exposure to the VLCC market trough chartering in two double hull VLCCs from Knightsbridge Tankers Ltd. for a five year period. These charters commence in 2007.
The rationale behind these decisions is a firm belief that the underlying supply /demand balance for VLCCs will remain tight for the period to come. This tight balance will be driven by the phase out of single hull tonnage as well as increased transportation volume and longer average transportation distances.
June 27, 2006 The Board of Directors Frontline Ltd. Hamilton, Bermuda