FRO - Termination of contracts for two OBO carriers

Hamilton, Bermuda, December 11, 2012


Frontline Ltd. (Frontline) has agreed to an early termination of the time charter out contracts on the two OBO carriers, Front Viewer and Front Guider, and will receive a compensation payment in December 2012 from the charterers for loss of hire due to the early termination of approximately 34.5 million net.

Frontline has also agreed with Ship Finance International Limited ("Ship Finance") to terminate the long term charter parties for these two OBO carriers. The charter parties for Front Viewer and Front Guider are expected to terminate in late December 2012 and the first quarter of 2013, respectively. Ship Finance has sold the Front Viewer and expects to sell the Front Guider at the time the charter party terminates.

Frontline will pay Ship Finance approximately $23.5 million as compensation for the early termination of the charters and the estimated loss of future cash sweep relating to the two vessels.

Frontline Ltd. press release