Billionaire John Fredriksen will merge the Oslo-listed companies into a single enterprise with an expanded market share.
“By merging Frontline and Frontline 2012 we will regain Frontline’s position as a leading tanker company,” Fredriksen said. “The combined company will have a large fleet and a strong balance sheet which puts us in a position to gain further market share through acquisitions and consolidation opportunities.”
The companies were split up in 2011 to avoid a default in the face of falling rates for tanking. The split created Frontline 2012, which took over outstanding orders.
Their merger will involve the purchase of Frontline 2012 by Frontline through the issue of $1.5 billion worth of shares to Frontline 2012 owners.
The reintegrated company will have a fleet of around 90 vessels, including VLCCs and Suezmax tankers. Another 22 newbuilds are scheduled for delivery between 2015 and 2017.
Shares in Frontline have surged recently as onshore storage fills up and companies turn to offshore options.
The UK's hydrocarbons regulator has awarded 31 new exploration licences in the country's North Sea waters, Reuters reported on Friday Read More
ExxonMobil announced the closing of its USD 60-billion acquisition of Pioneer Natural Resources on Friday, a move that solidifies its… Read More
BP-Eni joint venture Azule Energy has entered a strategic farm-in agreement with Rhino Resources in Namibia's offshore Orange Basin, the… Read More
Africa-focused energy group Chariot has spudded the RZK-1 exploration well on the Gaufrette prospect at the Loukos Onshore licence in… Read More
Touchstone Exploration has acquired Trinidad-focused Trinity Exploration & Production in an all-shares deal, the Canadian upstream player said on Wednesday Read More
ExxonMobil is "optimistic and pushing forward" with the Rovuma LNG project in Mozambique and eyes an FID by the year's… Read More
This website uses cookies.