Knightsbridge's vessel owning subsidiaries have entered into management agreements with Frontline Management (Bermuda) Ltd. (Frontline Management), a wholly owned subsidiary of Frontline Ltd. Under the management agreements, Frontline Management is responsible for technical management of the vessels, including crewing, maintenance, repair, capital expenditures, drydocking, vessel taxes, maintaining insurance and other vessel operating expenses. We have also entered into an administrative services agreement with Frontline Management under which Frontline Management provides us with administrative support services. Knightsbridge and its vessel owning subsidiaries have also a commercial management agreement with Golden Ocean Management (Bermuda) Limited, a wholly owned subsidiary of Golden Ocean Group Limited.
Because Frontline Management has assumed full managerial responsibility for the fleet and the administrative services, Knightsbridge Tankers Limited currently does not have management or employees who are not also officers or employees within the Frontline Group.
Frontline has, with the agreement of Knightsbridge and its vessel owning subsidiaries, outsourced certain services related to the Knightsbridge vessels to independent service providers:
- The vessels are managed by independent ship management companies. Pursuant to management agreements, each of the independent ship management companies provides operations, ship maintenance, crewing, technical support, shipyard supervision and related services for the Knightsbridge VLCCs.
- Accounting management services for each of the shipowning subsidiaries are also provided by the ship managers.