SFL Corporation announced  that it has agreed to acquire three new LR2 product tankers for an aggregate purchase price of approximately $230 million in combination with long term time charters to a world-leading energy and commodities company.

The vessels are currently under construction in China, with the latest eco-design features. The sellers are affiliates of the Company’s largest shareholder Hemen Holding Ltd, and the purchase price is in line with valuations by independent shipbrokers.

The Company expects to take delivery of the vessels between the second and fourth quarter of this year, and the charter period will be minimum five years plus up to three years of extension options. This adds close to $200 million to SFL’s fixed-rate backlog, excluding the optional years. The charterer will have options to purchase the vessels after year five and eight, subject to a profit share mechanism with SFL.

Ole B. Hjertaker, CEO of SFL Management AS, said in a comment: “We are pleased to do another milestone transaction in the tanker market at what we believe is an attractive stage of the market cycle. These product tankers are the most desired vessels for carrying clean petroleum products over long sea distances between the largest refineries and consumer centers of the world and will be in high demand to meet the future energy needs of the world. We are also very proud to add another leading energy and commodity powerhouse to our list of high quality clients.”