MODEC Awarded FPSO for Stybarrow Field, Offshore Australia

Tokyo, Mar. 20, 2006

MODEC Inc., (TSE:6269), announced today the signing of a contract with BHP Billiton for the provision of a Floating Production, Storage and Offloading (FPSO) facility for the Stybarrow Oil Field development. The project is located in permit WA-255-P(2) in the Southern Carnarvon Basin, approximately 65 kilometres off the north west Australian coast.

The project will include the provision of an FPSO capable of processing 80,000 barrels of liquids per day, and has a storage capacity in the order of 900,000 barrels. The FPSO is planned to be installed in approximately 825 meters water depth.

MODEC is responsible for the engineering, procurement, construction, installation, commissioning and operations of the FPSO, including the topsides processing equipment, hull and disconnectable internal turret mooring system. A new build FPSO hull slot at Samsung Heavy Industries, Co. Ltd. was secured in 2004 prior to implementation of this project and MODEC is now in progress of its construction works so that on-time delivery can be achieved.

The oil production from the Stybarrow field is expected during the first quarter of 2008. MODEC will own and provide FPSO services for the Stybarrow field for an initial ten year period with the option of one year extensions for a further five years.