Norway-based dry bulk shipping company Golden Ocean Group Limited has agreed to sell two of its newbuilding contracts at Chinese shipyard New Times Shipbuilding Co. Ltd to Frontline Ltd.

Under the initial contract, the two 157,500dwt vessels were supposed to be Capesize bulkers, but Golden Ocean decided in November to convert the two Capesizes to Suezmax newbuilding contracts.

The vessels are expected for delivery in the first quarter of 2017. Frontline said it would pay US$55m per vessel.

The transaction will reduce the company's newbuilding commitments by US$95m (including sales proceeds) and will also remove the need for financing of two Capesize vessels, the company said. The transaction is subject to customary closing conditions and is expected to close in late 2015.