Press Releases (2011)

Participation in FPSO chartering for Guara Field in Petrobras' pre-salt area

Tokyo, May 25, 2011 - MODEC, Inc. (MODEC, head office: Chiyoda-ku, Tokyo; president: Toshiro Miyazaki), Mitsui & Co., Ltd. (Mitsui, head office: Chiyoda-ku, Tokyo; president: Masami Iijima) and Mitsubishi Corporation (Mitsubishi, head office: Chiyoda-ku, Tokyo; president: Ken Kobayashi) have agreed to invest in building and chartering a floating production, storage, and offloading system (FPSO) to GUARA B.V, a Dutch company belonging to BM-S-9 consortium members. The FPSO will be delivered offshore Brazil and used to develop the giant pre-salt region of the Santos Basin, in the BM-S-9 block (Guara Area) under concession to the consortium comprised of the following three companies: Petróleo Brasileiro S.A – Petrobras (45%), BG E&P Brasil Ltda – BG (30%), and Repsol Sinopec Brasil S.A – Repsol Sinopec (25%).

Mitsui and Mitsubishi shall soon finalize their capital investment in Dutch company Guara MV23 B.V. (MV23), a subsidiary established by MODEC. MODEC is currently converting the VLCC (very large crude oil carrier) Radiant Jewel into an FPSO under the ownership of MV23. Upon completion of the conversion, the system shall be named the FPSO Cidade de Sao Paulo MV23 and be deployed to the BM-S-9 (Guara) Block off the Brazilian coast, where vast oil reserves lay beneath a layer of rock and salt at a depth of 5,000 meters.

The topsides modules will be lifted and integrated on the FPSO in Brazil. The FPSO is scheduled for delivery during the 4th quarter of 2012, and is expected to be engaged in oil production for 20 years. MODEC is responsible for the engineering, procurement, construction, mobilization, and operation of the FPSO, including topsides processing equipment as well as hull and marine systems.

This is the second FPSO chartering project for the pre-salt area oil field, following the one announced in March 2010 also by us. MV23's Brazilian local partner as joint venture partner in the tender, Schahin Group, is considering the participation as a shareholder of MV23 for a certain share. Schahin Group will also take some roles in the operation of the FPSO.

Outline of FPSO
Oil processing capacity120,000 barrels of oil per day
Gas processing capacity180 million cubic feet per day
Oil storage capacityapproximately 1,600,000 barrels
Water injection capabilities150,000 barrels per day
Mooring TypeSpread Mooring (in 2,140 meters)

Controlling stake of MV23 (after share participation)
MODEC, Inc.34%
Mitsui & Co., Ltd.33%
Mitsubishi Corporation33%

Related Project

FPSO Cidade de Sao Paulo MV23

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