MODEC's FPSO Stybarrow Venture MV16 Achieves First Oil

Tokyo, Dec. 21, 2007

MODEC announced that ramp up of oil production on the FPSO Stybarrow Venture MV16, started on November 11, 2007 and achieved full production on December 1, 2007 after fully commissioning the facilities and interference testing in the reservoir. The FPSO is located in permit WA-255-P (2) in the Exmouth Sub-basin, approximately 65 kilometers from Exmouth, off the northwest coast of Australia.

From cutting steel for hull construction to achieving first oil for the new-build FPSO was only 21 months. "We are pleased to have achieved first oil in such a short period of time," said Kenji Yamada, President and CEO of MODEC, Inc. The FPSO sailed form the Jurong shipyard in Singapore at the end of August. "BHP Billiton is a very important client - this is the third FPSO we have owned and operated for them. We have a fourth FPSO under construction and a very large TLP under construction for BHP."

MODEC was responsible for the engineering, procurement, construction, installation and commissioning of the Floating Production Storage and Offloading (FPSO) and provides the operation and maintenance services for an initial ten year period with possible extensions. The unit has a storage capacity of 900,000 barrels, a total liquid processing capacity of 100,000 barrels per day, a crude production capacity of 80,000 barrels of oil per day and a gas production capacity of 45 million standard cubic feet per day. It is installed in approximately 825 meters water depth.

The FPSO has an internal disconnectable turret which was designed and manufactured by SOFEC. The disconnectable turret enables the vessel to evacuate if a cyclone were to develop in the area.