Trafigura's wholly-owned subsidiary Trafigura Marine Logistics has entered into an agreement to sell 10 2019-built Suezmax tankers to Frontline through the sale of a TML special purpose vehicle which holds the vessels.
As part of the transaction, options have also been agreed for Frontline to acquire a further four Suezmax tankers built in 2019 through the sale of a second TML special purpose vehicle.
The 10 tankers being sold are all South Korean-built and are fitted with exhaust gas cleaning systems.
Closing of the transaction is set at November 15, 2019, being the earliest and March 15, 2020, being the latest expected date.
Frontline has agreed to time charter all the 10 vessels from Trafigura until closing of the transaction at a daily rate of approximately US$23,000.
Frontline has also agreed to charter five of the vessels back to Trafigura on three-year time charters at a daily base rate of US$28,400 with a 50 per cent profit share above the base rate.