MODEC Delivers Record Number of Projects in 2003

Tokyo, Jan. 7, 2004

MODEC (TSE: 6269) is extremely pleased to announce that 2003 was the most successful year in our 35-year history. In so doing, we achieved a number of firsts for the company as well as the offshore industry as a whole and concluded activities of historical importance to MODEC.

Our accomplishments included delivering five (5) FPSOs/FSOs/TLPs, signing contracts for two (2) new FPSO charter projects, and completing a very successful IPO on the Tokyo Stock Exchange. Additionally, MODEC and our sister company, FMC SOFEC, will be co-locating in the same Houston facility during the 1st half of 2004.

The five (5) projects delivered by MODEC in 2003 are:

- January: site delivery of new-build FSO Pathumabaha to PTTEP (a state oil company of Thailand), offshore Thailand. MODEC built this new FSO at Yantai Shipyard in China. The FSO was delivered on time for this fast-track project.

- July: site delivery to Esso of the Chad Offshore Facilities project, installed offshore Cameroon. MODEC supplied and installed a 20-km long 30" submarine pipeline including its shore approach, a tower yoke mooring system and FSO Kome Kribi 1. FSO Kome Kribi 1 is the third of four sister ULCC tankers converted by MODEC in the past 5 years. The facilities are designed to handle 225,000 BOPD.

- August: site delivery of FPSO Fluminense and subsequent installation completion of all subsea equipment from the subsea trees to the FPSO for Shell Oil Brazil on the Bijupira and Salema oil fields, offshore Brazil, in 700 m water depth. In addition to the FPSO, MODEC was responsible under the same turnkey contract for design, supply, installation and commissioning of subsea manifolds, subsea controls, risers, flowlines and umbilicals. This project marked MODEC's first true full field development contract combining the tremendous strengths of MODEC and FMC Technologies (NYSE: FTI). Apart from the FPSO construction, MODEC is also operating the facilities on behalf of Shell under a 13-year contract.

- October: site delivery of FPSO Cuulong MV9, installation, commissioning, startup and operation of this new build facility for CLJOC (a joint venture company among ConocoPhillips, PetroVietnam, KNOC and SK) on the Su Tu Den field, offshore Vietnam. MODEC owns and operates this FPSO under a charter contract for a minimum five-year period.

- December: site delivery and installation of our second MODEC TLP in 1,300 m water depth on Anadarko's Marco Polo field in the Gulf of Mexico, marking this TLP as being installed in the deepest water in the world. The MODEC TLP is designed to process 120,000 BOPD and 400 million scfd of gas.

Two new awards in 2003 have added to MODEC's increasing world-wide market share over the past 10 years:

- July: An FPSO for CNR's Baobab field, offshore Ivory Coast. The FPSO is designed to process 70,000 BOPD, 70 mm scfd of gas and 120,000 bpd of water injection. The FPSO will be moored via an external turret in 970 m water depth. The tanker selected is the fourth sister ship of the ULCC class that MODEC has converted. MODEC will own and operate the FPSO for CNR under a 10-year contract with an additional ten (10) one-year optional periods.

- October: An FPSO for Santos to be installed in 156 m water depth on the Mutineer-Exeter fields, offshore Australia. The FPSO is designed to process 100,000 BOPD, 3 million scfd and 125,000 BPD of water injection. MODEC will own and operate the FPSO for Santos under a five (5) year contract with possible extensions.

In addition to supplying newly built or converted FPSOs and FSOs as well as newly built TLPs, MODEC engages in lease and charter hire services with the oil companies.

FSO Ta'Kuntah, the first ship-shaped production facility to be installed in the Gulf of Mexico, achieved five years of operation. The FSO is operated by MODEC on under a charter services agreement with Pemex. It is designed to handle 800,000 BOPD and to store 2.3 million barrels of stabilized oil. During her five-year initial period, she has achieved the remarkable milestones of offloading 362 million barrels of oil with zero downtime, no lost time accidents and no oil discharges. She accomplished this notable feat by undertaking 655 offloadings, some in tandem and some by simultaneously offloading to a tanker in tandem and another tanker moored side-by-side to the FSO.