Bermuda-registered Knightsbridge Tankers has agreed to sell its 1995-built double hull VLCC tanker Chelsea for the net sale proceeds of approximately $99 million.

Delivery to buyers is expected to take place in January.

The sale will generate approximately $78.8 million in liquidity and a gain of approximately $49 million, based on delivery December 21.

In addition, the vessel is recently fixed to the beginning of February and the net result would be for the benefit of Knightsbridge.

It is believed the additional liquidity will partly be used to fund pre-delivery installments on Knightsbridge's newbuilding program, and will in addition strengthen the company's dividend capacity going forward.

The sale of the vessel represents no change in the company's strategy, but should be seen as an opportunistic transaction in the present strong tanker market, according to newswire report.