MODEC Selected for EPCI and Operation of FPSO

Tokyo, Jul. 20, 2007

MODEC announced today that BHP Billiton has signed a contract for the supply and operation of an FPSO to be located in Australia's Pyrenees field.

The Pyrenees field is located in Permit WA-12-R, in the Exmouth Sub-basin portion of the Carnarvon Basin approximately 45 kilometers northwest of Exmouth, Western Australia.

"This is the second large FPSO project We've won from BHP Billiton," said Kenji Yamada, President and CEO of MODEC, Inc. "We are very proud of this repeat business, as it is indicates the added value MODEC brings to our clients."

The other large project, the FPSO Stybarrow Venture MV16, is under construction in Singapore. The Stybarrow will also operate in the Carnarvon Basin. In addition to the FPSOs, MODEC is constructing a Tension Leg Platform for BHP Billiton that is planned to be installed in the Gulf of Mexico.

The Pyrenees FPSO will be capable of processing 96,000 barrels of oil per day, combined gas lift/re-injection capacity of 60 million cubic feet per day and having an oil storage capacity of approximately 850,000 barrels. The FPSO is planned to be installed in 200 meters water depth.

MODEC is responsible for the engineering, procurement, construction, mobilization and operations of the FPSO, including topsides processing equipment, hull and marine system and a SOFECĀ® disconnectable internal turret mooring system.

"This will be SOFEC's fifth disconnectable internal turret system in operation," said Rick Hall, President of SOFEC. "The Pyrenees project will be our third disconnectable system deployed in Australia, and the second for BHP Billiton. A similar system in Australia has successfully disconnected eight times since 2005 - clearly demonstrating the suitability of our systems for this harsh environment."

MODEC will convert a Suezmax tanker. The FPSO is expected to begin production in the first half of 2010. MODEC has been contracted to operate the Pyrenees FPSO for 15 years with possible extensions.