FRO develops FPSO activity
Offshore staff
BERMUDA, Bahamas -- Frontline Ltd. is in the process of establishing a separate entity to develop the company's floating production activity. The company is discussing the sale of all its floating production activities including the FPSO Front Puffin, under conversion at Keppel Shipyard in Singapore, and its floating production management organization to Sea Production Ltd.
Sea Production will be established as a separate entity to develop FPSO and FSO projects. Oscar Spieler, previous CEO of Frontline Management AS, will be the new company's CEO and executive chairman.
The Sea Production fleet will include the Front Puffin FPSO and possibly the Crystal Ocean FPSO and two double-sided Aframax tankers that the company is negotiating with Greenwich Holdings to purchase from Seadrill Ltd. If the purchase goes through, the tankers will be converted to FPSOs. The conversion of Front Puffin is expected to be completed in 2Q 2007.
Frontline is bringing external investors into Sea Production and plans to finance the company on a stand-alone basis. It is the intention for Keppel Shipyard, which has been a partner in the Puffin project, to be a substantial shareholder in Sea Production.
Keppel Shipyard and Frontline plan to subscribe to a minimum 33% of the new equity together.
2/2/2007