Frontline has ordered two Suezmax Newbuildings

NORWAY: The John Fredriksen controlled tanker-giant Frontline Ltd. has entered into a contract with Jiangsu Rongsheng Heavy Industries Co., Ltd. for the delivery of two 156,900 dwt Suezmax newbuildings.

The vessels are expected to be delivered in February and May 2013. Frontline has also secured options for two similar Suezmax newbuildings. The contract price for the newbuildings is 15-20 percent lower than indicated price levels for 2010 delivered tonnage. These contracts help to renew the fleet and provide an opportunistic investment approach with great flexibility.

In June 2010, Frontline received notices from the owners of the two chartered-in 2001-built Suezmax tankers, Front Melody and Front Symphony, and the two chartered-in 2000-built VLCCs, Front Tina and Front Commodore, to exercise their option to extend the charter period for two years to the end of 2013 from the expiry of the mandatory lease period at the end of 2011. The Company believes the charter-in rates are attractive compared to current time charter rates. The owners have the option to further extend the charter periods until the end 2015.

With reference to the press release from the Company dated April 19, 2010, we are pleased to announce that we have successfully taken delivery of the two 2009-built VLCCs, Front Eminence and Front Endurance, in June 2010. In addition, the third VLCC newbuilding from Shanghai Waigaoqiao Shipbuilding Co., Ltd., Front Cecilie, was delivered according to schedule on June 10, 2010.