Frontline Ltd. (“Frontline” or the “Company”) has declared an option with COSCO Shipyard, China to convert Front Target to a heavylift vessel. The conversion will begin in May 2007, and completion is expected in August 2007. By fitting a new mid-ship section and upgrading all major components of the vessel, we foresee that the vessel will be able to operate for at least 15 years.
The Board is very enthusiastic with regards to the current heavylift market. There is a limited number of heavylift vessels available in the market, the fleet is ageing, and the rig market is currently booming with a lot of offshore units currently under construction. Front Sunda which is in the process of being converted to a heavylift vessel, is expected to be delivered in April 2007. The Company holds further options to convert single hull tankers to heavylift vessels which it intends to use.
Frontline has also entered into a management contract with International Transport Contractors, the Netherlands (“ITC”) with regards to the commercial operation of the heavylift vessels. ITC has substantial experience in the operation of heavylift vessels, and Frontline has shared a good working relationship with this company in connection with the management of vessels in the past.
We are also pleased to announce that the previous CEO of Dockwise, Mr. Bert Bekker, will join Frontline in the capacity of Executive Advisor of our heavylift activities.
December 12, 2006
The Board of Directors
Questions should be directed to:
Oscar Spieler: Chief Executive Officer, Sea Production Management AS
+47 23 11 46 11
Bjørn Sjaastad: Chief Executive Officer, Frontline Management AS
+47 23 11 40 99