MODEC announced today the FPSO MODEC Venture 1 will become available for time charter. The field in which the FPSO has been operating is being abandoned.

MODEC received the Termination Notice of contract from ConocoPhillips Petroleum (03-12) Pty. Ltd., the field operator. The time charter contract will terminate on July 27, 2007.

The FPSO MODEC Venture 1, owned and operated by MODEC and leased to ConocoPhillips is a converted tanker with a disconnectable riser turret mooring. MODEC purchased the FPSO Skua Venture from a BHP Petroleum led joint venture and upgraded the vessel to meet the Elang/Kakatua/Kakatua North (EKKN) oil fields requirements. The FPSO was renamed MODEC Venture 1 and started operation in the EKKN field in the Timor Gap JPDA (Joint Petroleum Development Area) in August 1998.

The FPSO MODEC Venture 1 has been operating continuously with over 99% uptime for almost nine years. From August 1998 to present, the FPSO MODEC Venture 1 has offloaded 31.6 million barrels of crude oil.