Shipping giant Frontline is to break off its FPSO business into a separate company, Sea Production, including the FPSO "Front Puffin" currently under conversion at Keppel Shipyard in Singapore which is due for completion in the second quarter of this year. Sea Production’s CEO will be Oscar Spieler, the previous boss of Frontline Management. Sea Production will include the FPSO "Front Puffin" and is in negotiation with Greenwich Holdings to purchase two Aframax tankers suitable for FPSO conversion and the FPSO "Crystal Ocean" from Seadrill Limited. The final terms for these transfers are still under discussion.
In a statement, the company said: “Frontline is in the process of bringing external investors into Sea Production, and to finance the company on a stand alone basis. It is the intention that Keppel Shipyard which has been a partner in the Puffin project also will be a substantial shareholder in Sea Production. Keppel Shipyard and Frontline intend together to subscribe to minimum 33% of the new equity.”