Frontline restructuring VLCC newbuilding contracts

In April and May 2008, Frontline ordered six VLCC newbuildings at Jinhaiwan. In May 2009, two of these newbuilding orders were cancelled and the installments paid-in were transferred to two of the retained newbuildings and the two remaining VLCC newbuildings orders were changed into options.

As a result of the re-structuring Frontline has agreed to maintain the two options and has ordered one additional VLCC newbuilding and is now committed to take delivery of five 320,000 dwt VLCC newbuildings, with a total contract price of $525 million. The delivery dates for the vessels have been deferred by three months from the original contractual dates, with the first vessel to be delivered in January 2012 and the last in February 2013.

Frontlines newbuilding program currently comprises two Suezmax tankers and five VLCCs, which constitute a contractual cost of $650 million, and in addition two Suezmax newbuilding options.