Ship Finance International has entered into an agreement to sell a 1998-built VLCC, Front Vanguard, to a third party for around $24m.

The sale of the VLCC also means that the charterer Frontline has agreed with Ship Finance to prematurely end the charter. “Frontline has agreed a compensation payment to Ship Finance of approximately $400,00 for the termination of the current charter,” Frontline said.

Both Frontline and Ship Finance are owned by shipping magnate John Fredriksen.

The VLCC Front Vanguard is expected to be handed over to the new owner by the end of June.

“Divesting of older vessels is a part of the company’s strategy to renew and diversify the fleet, and the proceeds are expected to be reinvested in new assets,” Ship Finance said.

Following the sale, the number of vessels on charter to Frontline will be reduced to 13 ships, including 11 VLCCs and two suezmax crude tankers.

Source: seatrade-maritime.com