Bermuda-based Ship Finance International (SFL) has contracted to sell the oldest vessel in its VLCC fleet.
The 2001-built tanker Front Ariake is slated to be delivered to an unnamed third party for a net sales price of approximately US$20.7 million, including approximately US$3.4 million in the form of an interest-bearing loan note from SFL parent company Frontline.
The book value of the vessel is approximately US$27.6 million, thus an impairment is expected to be recorded in the third quarter.
Delivery to the new owner is expected later this month.