MODEC's FPSO Cidade do Rio de Janeiro MV14 Achieves First Oil

Houston, Jan. 24, 2007

MODEC, Inc. TSE (Tokyo Stock Exchange): 6269, announced today that the FPSO Cidade do Rio de Janeiro MV14, owned and operated by MODEC and leased by PetrĂ³leo Brasileiro S.A. (Petrobras) began production (first oil) on January 9, 2007 on the Espadarte Sul field located in the Campos Basin, offshore of Brazil.

MODEC was responsible for the engineering, procurement, construction, installation, commissioning of the Floating Production Storage and Offloading (FPSO) and holds an initial eight year operating contract with Petrobras, with four additional one-year renewal options. Total contract revenues of the charter and operation of the FPSO including option periods could reach US $733 million.

"MODEC is pleased to be working with Petrobras. In addition to this FPSO, MODEC will deliver an FSO to Petrobas by the end of the first quarter 2007. Additionally, in December 2006 we were awarded a contract to build and operate a second FPSO for Petrobras on the Jabuti field in the Campos Basin," said Shashank Karve, President and CEO of MODEC International LLC. "Petrobras is a very valued client."

The FPSO Cidade do Rio de Janeiro MV14 is capable of processing up to 100,000 barrels of oil and 2.5 million cubic meters of gas per day and has a storage capacity of 1.6 million barrels of oil. The vessel is 320 meters long, 54 meters wide and 30 meters tall and is installed at a water depth of 1,350 meters. The FPSO will be connected to nine subsea wells, five of which produce oil and natural gas and the other four are used for water injection.

FPSO Cidade do Rio de Janeiro MV14
FPSO Cidade do Rio de Janeiro MV14