Ship Finance International Limited (NYSE:SFL) (“Ship Finance” or the “Company”), today announced that it has assumed two newbuilding Suezmax tanker contracts from Frontline Limited (“Frontline”), an affiliated company. Frontline’s offer to the Company to assume these contracts was included in Ship Finance’s 2nd Quarter 2006 report.
The Suezmax vessels, of 153,000 dwt each, will be built at the Jiangsu Rongsheng Heavy Industries Group Co. Ltd. in China for delivery in 1Q09 and 3Q09.
The vessels are a part of a series of vessels ordered by Frontline at the shipyard, and the Company considers the price and payment terms to be attractive. Frontline will perform building supervision and shipyard follow-up on Ship Finance’s behalf.
The vessels are currently unemployed, but Ship Finance will market the vessels for medium to long-term employment, consistent with its strategy.
This order confirms Ship Finance’s position as a one of the largest owners of crude oil tankers in the world. Including vessels under construction, the fleet now consists of 61 vessels in total, with an average fixed charter coverage of more than 11 years.
November 6, 2006
The Board of Directors
Ship Finance International Limited
Ole B. Hjertaker: Chief Financial Officer, Ship Finance Management AS
Tel.: +47 23114011 / +47 90141243