Frontline Ltd is happy to announce the acquisition of the vessel "Gerrita" (built 1990, 112,046 dwt). The vessel is the first investment by the Company's new business unit Frontline FPSO.
Frontline FPSO has been established to develop floating production (FPSO) and storage (FSO) projects on behalf of Frontline. Frontline, through Frontline FPSO, endeavors to become a leading FPSO contractor by utilizing its large fleet of suitable vessels, by establishing an effective organization and through partnerships with strategic subcontractors.
The Gerrita, which is being renamed Front Puffin, will trade in the spotmarket for a short period, before it will be converted to an FPSO. Thereafter the vessel will be moored at the Puffin Field offshore North Western Australia. There it will operate for the Australian E&P oil company AED Oil Limited (Australian Stock Exchange ticker AED).
AED's pressrelease is available in the attachment below.
Frontline also announces the sale of its VLCC Golden Stream (1995, 275,616 dwt). The sale will yield a net cash flow of USD 41 million and a profit of USD 11 million. Delivery to the buyers is expected within a few days.