FRONTLINE LTD. AND BP SHIPPING LTD. SIGN MAJOR CHARTER CONTRACT
Press release from Frontline Ltd. 03.09.1998
FRONTLINE LTD. and BP SHIPPING LTD. are pleased to announce that the two companies have signed a term charter agreement, which will further increase the amounts of business done between the two parties.
As a result of the new venture, BP will charter three of Frontline`s modern VLCCs for an initial period of one year with a further one year option. Two of the vessels will be of the new Frontline C-Class. BP will pay a market-related rate, with certain upside to be shared between the parties based on the vessels` trading patterns and actual performance.
The new deal between the companies comes in addition to the four VLCC newbuildings, which presently are under construction at Samsung. These four newbuildings owned by Frontline`s subsidiary Windsor Petroleum will, after delivery, enter into long term bareboat charter contracts with BP. BP will man and operate these vessels. Frontline also has the Suezmax vessel `Lillo` on long-term charter to BP.
John Fredriksen, Chairman of Frontline Ltd. says in a comment to the deal: ` We are proud to be given this opportunity by BP. It confirms that the efforts invested in building Frontline into the world`s largest operator of modern high quality tanker tonnage is highly appreciated by our customers. Strong relations and flexible services are the key future success factors in the tanker industry. The new contract secures an effective employment for a major part of Frontline`s spot VLCCs.`
BP`s head of chartering Adrian McMahon, also expressed satisfaction with the new venture. `Frontline has, through the actions taken over the last years, created a size and a flexibility which is important to us as customers. The contract gives us access to some of the most modern tonnage available in the market. It assures a safe and reliable service. The cost of our transportation will be competitive and can be further improved by the way we are able to utilize the ships effectively within our system. Through the structure of this deal Frontline has shown the willingness to develop new approaches to the traditional owner / charterer relationship and look forward to building on this.`
Shipbrokers Braemar of London and P.F.Bassøe of Oslo were instrumental to the contract.
Contact persons :
BP Shipping Ltd.: Adrian McMahon Tel : +44 171 579 6803
Frontline Ltd.: Hans Petter Løken Tel : +47 23 11 40 17