Mutineer-Exeter FPSO Achieve First Oil

Tokyo, Mar. 30, 2005

MODEC, Inc. (TSE: 6269) has started production from Mutineer-Exeter field offshore Australia for Santos, Ltd. on March 29. The contract included the supply of a Floating Production, Storage and Offloading (FPSO) vessel on time charter to Santos.

The Mutineer-Exeter field is located approximately 150 kilometers north of Dampier on the north west coast of Australia. The "MODEC Venture 11" was converted from an existing double-hull Suez-max tanker "Airway" in Jurong shipyard in Singapore. MODEC was responsible for the engineering, procurement, construction, installation and commissioning for the FPSO including the topsides processing equipment and disconnectable internal turret mooring system.

The FPSO is installed in 156 meters (512 feet) water depth and has an oil processing capacity of 100,000 barrels of oil per day, gas handling of 2-3 million cubic feet per day, produced water treatment of up to 125,000 barrels per day, topsides water injection facilities for 150,000 barrels per day and storage capacity of 930,000 barrels. MODEC will own and operate the FPSO for minimum five (5) years with possible extensions.

"We are pleased to achieve the first oil from the Mutineer-Exeter field on time despite its tight schedule," said Kenji Yamada, President & CEO of MODEC, Inc. "This is the third FPSO we will operate in Australian waters and we look forward to working with Santos in the flawless operations of the FPSO."

FPSO MODEC Venture 11
FPSO MODEC Venture 11