MODEC and IMC ordered new-build FPSO to Samsung Heavy Industries

Tokyo, Jul. 14, 2004

IMC-MODEC JV 1 PTE LTD., 50/50 Joint Venture between MODEC, Inc., Tokyo (TSE:6269) and IMC Holdings Limited, Singapore, signed a construction contract of a new-build FPSO hull with Samsung Heavy Industries, Co., Ltd. The FPSO is planned to have a capacity of 1,000,000 - 1,400,000 barrel storage. Completion is scheduled in July 2007.

A demand for new-build FPSOs is increasing because oil companies require long term production as FPSOs have been applied to bigger reservoir fields. Despite this growing demand, the shortage of shipyard docks' availability resulting from recent commercial ships building boom has become a bottleneck for FPSO contractors. To secure the early delivery of a FPSO hull that will be deployed to a FPSO project in the near future, MODEC and IMC established the joint venture company to build and own a new-build FPSO.

Kenji Yamada, President & CEO of MODEC, Inc. says, "This is a new type of contract and it has a significant meaning for MODEC as well as for the whole FPSO industry. We have worked with Samsung Heavy Industries for the construction of one FPSO and one TLP recently and both projects were delivered successfully. I believe this contract will lead MODEC, IMC and Samsung one step ahead of other competitors in the industry."

Besides the above construction agreement, IMC Holdings Limited has ordered another new-build FPSO to Samsung Heavy Industries. MODEC will also cooperate with IMC for this unit.