Frontline snatches six new VLCCs in $566 million resale deal

John Fredriksen’s oil shipping firm Frontline said it would buy six “ECO-type” VLCCs currently under construction at South Korea’s Hyundai Heavy Industries for $565.8 million.

The price includes an estimated $25.7 million in additions and upgrades to the standard specifications of the vessels, Bermuda-based Frontline said in a statement.

Moreover, the vessels would operate on different fuels, including biofuel. They can be converted or retrofitted to consume fuels like LNG or ammonia, the firm said.

They will also feature exhaust gas scrubber technology, anti fouling systems, and digital energy performance solutions.

Hyundai Heavy will deliver five of the ships during 2022, starting in the first quarter, and the last vessel in the first quarter of 2023.

In addition, Frontline said it would meet the financing of this acquisition with existing borrowing facilities and would establish long-term financing closer to delivery of the vessels.

“This transaction is consistent with our core company goals to increase exposure to the VLCC market without adding to existing vessel supply,” Lars Barstad, interim CEO of Frontline Management, said.

“With this acquisition Frontline is tangibly moving on our journey towards lower carbon emissions,” he said.

Frontline did not reveal the current owner of the ships but VesselsValue data shows that Evangelos Pistiolis-led Central Mare sold the six VLCCs.

The 300,000-dwt vessels will have a length of about 330 meters, according to the data.

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