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FRO - Termination of contracts for two OBO carriers


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© Marketwire 2012
2012-12-11 15:41:19 -

HAMILTON, BERMUDA -- (Marketwire) -- 12/11/12 -- Frontline Ltd. ("Frontline ") has
agreed to an early termination of the time
charter out contracts on the two OBO carriers, Front Viewer and Front
Guider,
and will receive a compensation payment in December 2012 from the
charterers for
loss of hire due to the early termination of approximately 34.5 million
net.



Frontline has also agreed with Ship Finance International Limited
("Ship
Finance") to terminate the long term charter parties for these two OBO
carriers.
The charter parties for Front Viewer and Front Guider are expected to
terminate
in late December 2012 and the first quarter of 2013, respectively. Ship
Finance
has sold the Front Viewer and expects to sell the Front Guider at the
time the
charter party terminates.





Frontline will pay Ship Finance approximately $23.5 million as
compensation for
the early termination of the charters and the estimated loss of future
cash
sweep relating to the two vessels.
December 11, 2012
The Board of Directors
Frontline Ltd.
Hamilton, Bermuda




FORWARD LOOKING STATEMENTS



Matters discussed in this document may constitute forward-looking
statements.
The Private Securities Litigation Reform Act of 1995 provides safe
harbor
protections for forward-looking statements in order to encourage
companies to
provide prospective information about their business. Forward-
looking
statements include statements concerning plans, objectives, goals,
strategies,
future events or performance, and underlying assumptions and other
statements,
which are other than statements of historical facts.



Frontline desires to take advantage of the safe harbor provisions of the
Private
Securities Litigation Reform Act of 1995 and is including this
cautionary
statement in connection with this safe harbor legislation. The words
"believe,"
"anticipate," "intends," "estimate," "forecast," "project," "plan,"
"potential,"
"will," "may," "should," "expect" "pending" and similar expressions
identify
forward-looking statements.



The forward-looking statements in this document are based upon
various
assumptions, many of which are based, in turn, upon further
assumptions,
including without limitation, management's examination of historical
operating
trends, data contained in Frontline's records and other data available
from
third parties. Although Frontline believes that these assumptions
were
reasonable when made, because these assumptions are inherently
subject to
significant uncertainties and contingencies which are difficult or
impossible to
predict and are beyond Frontline's control, you cannot be assured that
Frontline
will achieve or accomplish these expectations, beliefs or projections.
Frontline
undertakes no duty to update any forward-looking statement to
conform the
statement to actual results or changes in expectations.



Important factors that, in Frontline's view, could cause actual
results to
differ materially from those discussed in the forward-looking
statements
include, without limitation: the strength of world economies and
currencies,
general market conditions, including fluctuations in charterhire
rates and
vessel values, changes in demand in the tanker market, including but not
limited
to changes in OPEC's petroleum production levels and world wide oil
consumption
and storage, changes in Frontline's operating expenses, including bunker
prices,
drydocking and insurance costs, the market for Frontline's vessels,
availability
of financing and refinancing, ability to comply with covenants in such
financing
arrangements, failure of counterparties to fully perform their contracts
with
us, changes in governmental rules and regulations or actions taken by
regulatory
authorities, potential liability from pending or future litigation,
general
domestic and international political conditions, potential
disruption of
shipping routes due to accidents or political events, vessel
breakdowns,
instances of off-hire and other important factors. For a more
complete
discussion of these and other risks and uncertainties associated
with
Frontline's business, please refer to Frontline's filings with the
Securities
and Exchange Commission, including, but not limited to, its annual
report on
Form 20-F.



This information is subject of the disclosure requirements acc. to §5-
12 vphl
(Norwegian Securities Trading Act)



This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:



(i) the releases contained herein are protected by copyright and
other applicable laws; and



(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.



Source: Frontline Ltd. via Thomson Reuters ONE



[HUG#1664103]




Questions should be directed to:
Jens Martin Jensen
Chief Executive Officer
Frontline Management AS
+47 23 11 40 00

Inger M. Klemp
Chief Financial Officer
Frontline Management AS
+47 23 11 40 00



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Contact Person:


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