MODEC receives award for EPCI, Charter and Operation of FPSO

Tokyo, May 11, 2007

MODEC announced today the signing of contract with Truong Son Joint Operating Company (TSJOC) for the charter and operation of an FPSO to be located in Vietnam's Song Doc field. The Song Doc field is located in Block 46/02, approximately 170 kilometers offshore Vietnam. Truong Son Joint Operating Company (TSJOC) is the operator of the field on behalf of Petrovietnam Exploration and Production Company who has a 40% interest, Talisman (Vietnam 46/02) Ltd. who has a 30% interest and Petronas Carigali who has the remaining 30% interest in the field.

The contract award was made as a result of a competitive international tender, conducted in accordance with Vietnamese procurement laws.

MODEC is responsible for the engineering, procurement, construction, installation, commissioning and operations of the FPSO, including topsides processing equipment, hull and marine system and a SOFEC® spread mooring system.

The FPSO will be capable of processing 30,000 barrels of liquid per day and will have an oil storage capacity of 360,000 barrels. The FPSO is planned to be installed in 55 meters water depth.

MODEC will convert a Panamax tanker. The FPSO is expected to start the production in the field in mid 2008. The charter contract of the FPSO is five years with an additional five one-year options.

"This is our fifth vessel that will be offshore Vietnam," says Kenji Yamada, President and CEO of MODEC, Inc. "We are very proud of the deep relationships we have developed in Southeast Asia."