OSLO, Norway, May 14, 2001 (PRIMEZONE) — Frontline (Nasdaq:FRONY) has entered into an agreement to sell one of its 2000-built suezmax tankers, Front Archer. The Front Archer was designed and built with future employment as a shuttle tanker in mind and is equipped with a controllable pitch propeller and thruster tunnel. It is the buyer’s intention to use the vessel in his shuttle operations.
Frontline took delivery of the Front Archer in February 2000 and the vessel has traded in the spot market from delivery. The vessel is expected to be delivered to the buyer in July/August 2001. Frontline expects to book a profit of approximately USD 20 million and to release about USD 32 million in liquidity.
Frontline did not fully utilize the technical capacity of Front Archer in regular trading. In view of this, and in view of the fact that Frontline’s newbuilding program after acquisition of Mosvold already includes two suezmaxes and six VLCCs, the Board has decided to accept the price offered for Front Archer. It has been an important consideration for the Board that the ship is sold for shuttle trade and thereby will not be competing with the existing Frontline fleet in the spot market.
CONTACT: Frontline Ltd., Oslo, Norway Ola Lorentzon, Frontline Management +47 23 11 40 00