Frontline orders VLCCs from Chinese yard

Frontline Ltd. has ordered four 320,000-deadweight-ton very large crude carriers from China's Zhoushan Jinhaiwan Shipyard Co. Ltd. for an undisclosed amount.

The Bermuda-registered tanker company has also secured options for two similar VLCC newbuildings at a fixed price.

The ordering of the tonnage has been done as a function of a positive market outlook, attractive contract price and payment terms, and is supported by the wish to continuously renew the fleet. It has been of vital importance for the board that the deal can be executed and financed without significantly reducing Frontline's dividend capacity in the short to medium term, Frontline said in a statement.

The company added its affiliate Golden Ocean Group Ltd. has very good experience with the quality and deliverability of the Zhoushan Jinhaiwan shipyard. 

Source: American Shipper