MODEC's FSO Cidade de Macae MV15 Achieves First Oil; Charter Begins

Houston, Jan. 11, 2008

MODEC announced that the FSO Cidade de Macae MV15, owned and operated by MODEC and leased by Petroleo Brasileiro S.A. (Petrobras), successfully achieved first oil on November 26, 2007. Final Acceptance was received on November 29, 2007. Final Acceptance marks the beginning of the 20 year charter.

The FSO, which has a storage capacity of 2.15 million barrels of oil, is one of the largest FSO units in the world. It was converted from an Ultra Large Crude Carrier (ULCC).

The FSO is equipped with two independent offloading systems: direct offloading utilizing deep-well cargo pumps on the FSO via an offloading hose to the tandem moored offtake tanker, which is capable of offloading 944,000 barrels of oil per day; the main system is the export pumping system on deck which can export 1.58 million barrels of oil per day from the FSO via export risers to two loading CALM buoys located 2.5 km and 5.0 km away from the vessel.

The FSO is permanently moored by a SOFEC external turret with 12 anchor legs. The FSO topsides include a crude inlet heater module, crude import/export metering module, E-house and three gas turbine generators sets which make up the power generation module.

The FSO is the floating oil storage and offloading component of the Planned Development and Oil Distribution (PDET) facility designed by Petrobras to be the production hub for multiple floating production units in Campos Basin one of the most sophisticated offshore oil distribution facilities in the world. The FSO will receive and export production from five platforms offshore Brazil: P-52 (Roncador), P-53 (Marlim Leste), P-51 (Marlim Sul) and P-55 (Roncador) and Roncador Module 4 unit that will be installed in the future. The FSO Cidade de Macae MV15 is capable of receiving up to 818,000 barrels of oil per day.

MODEC was responsible for the engineering, procurement, construction, installation, commissioning of the FSO and holds 20-year operating contract with Petrobras.

"This is our third vessel delivered offshore Brazil and we have a fourth under construction. Petrobras is a very important client," said Shashank Karve, President and CEO of MODEC International LLC. "MODEC is proud to be part of the PDET program and look forward to adding more floating production facilities to the area."