April 8, 2022, by Naida Hakirevic Prevljak

Norwegian tanker owner and operator Frontline and its Belgium-based counterpart Euronav have decided to pursue a merger, creating a global leader in the oil tanker industry.

If the combination materializes, the combined group would continue under the name Frontline and would continue to operate from Belgium, Norway, UK, Singapore, Greece and the US.

In view of rapid technological changes, including digitalization and new low carbon fuels adoption, the combined group would be able to mobilise more resources and achieve meaningful scale to meet these challenges and opportunities from the energy transition, the duo said.

“This transaction would mark an exciting development for the tanker industry, creating a leading tanker company which would be positioned to serve the needs of customers, support partners and drive technology and sustainability initiatives to lead the energy transition,” Hugo De Stoop, CEO of Euronav said.

The combined business entity wants to be among the leaders in sustainable shipping, aiming for the highest environmental, social, and governance (ESG) standards in the industry.

Fleet decarbonization journey of Euronav and Frontline

Over the past few years, both companies have been exploring different options that would help them decarbonize their fleets.

In 2021, Frontline appointed classification society DNV  towards IMO 2030- 2050.

Last May, Frontline also inked a resale deal to buy six latest generation eco-type VLCC newbuildings.