Tanker owner and operator Frontline has reached an agreement with Bermuda-based ship owner Ship Finance International Limited to terminate the long-term charter for the 1998-built Very Large Crude Carrier (VLCC) Front Century.
Frontline has agreed a compensation payment to Ship Finance of around USD 4 million for the termination of the current charter.
“We expect the vessel to cease operating as a conventional tanker and the charter with Ship Finance will terminate in the first quarter of 2017,” Frontline said.
Following the termination, Ship Finance has sold the vessel to China’s Kunlun Shipping for a price of USD 18.7 million, according to data released by VesselsValue.
Featuring 311,200 dwt, the vessel was built at South Korean shipyard Hyundai Heavy Industries.
Frontline’s number of vessels on charter from Ship Finance will now be reduced to 12 vessels, including 10 VLCCs and two Suezmax tankers.