John Fredriksen’s Frontline and a subsidiary of Trafigura have reached an agreement to extend the option related to the acquisition of two Suezmax tankers.
Under the deal reached in August, Frontline was to take over ten 2019-built Suezmax tankers, fitted with exhaust gas cleaning systems, with two separate options to acquire two plus two additional Suezmax tankers from Trafigura Maritime Logistics.
The first option for the Suezmax duo expired on September 12, therefore, the parties agreed to extend the expiry date for the option to September 18.
The second option, with a deadline of September 24, would expire if the first option is not validly exercised.
Frontline earlier said that the transaction was expected to close between mid-November 2019 and mid-March 2020. Until then, the company would time charter all the units at a daily rate of around USD 23,000 in order to obtain earlier exposure.