The deal involves four firm 160,000-dwt tankers, with options for four more. Deliveries are scheduled from 2016 onwards.

The price is understood to be $59.5m apiece, which Oslo broker Nordic Shipping says is close to $10m less than what the leading yards in South Korea are quoting. A Frontline 2012 director states that the terms of the deal are attractive and “at least $10m lower” than Korean prices.

Fredriksen