Golden Ocean Group Ltd. has entered into an agreement with Knightsbridge Tankers Ltd. to sell the capesize vessel Golden Zhejiang for $65.5 million.

The vessel will be sold together with the existing four-year charter agreement. The completion of the transaction is subject to successful financing and equity offering in Knightsbridge Tankers. The deal is expected to be concluded during the four quarter of 2010.

The sales proceeds will be used to pay down debt on the asset and the balance, $18.5 million, to acquire a number of restricted common shares in Knightsbridge. Golden Ocean will receive shares at the same price as contemplated in the public offering of shares in Knightsbridge that was launched yesterday.