Frontline terminates OBO charter contract with Ship Finance

OSLO Tue Oct 16, 2012 8:12am EDT

OSLO Oct 16 (Reuters) - Norwegian shipping firm Frontline terminated the long term charter contract of an ore-bulk-oil carrier and Ship Finance International simultaneously sold the vessel, Frontline said on Tuesday.

Frontline will make a compensation payment to Ship Finance of approximately $0.5 million, it said.

The transaction will reduce Frontline's obligations under capital leases by approximately $1.1 million and expects to record a loss of approximately $0.1 million on the deal.