MODEC FSO sets sail for Vietnam

Tokyo, Jul. 22, 2008

MODEC announced today that the newly-built FSO RANG DONG MV17 has set sail for final installation offshore Vietnam. The FSO is one of six floating production projects that MODEC is currently managing. It is the first project MODEC has completed with COSCO (Zhoushan) Shipyard Co., Ltd., and set an important milestone for COSCO, as the FSO is the first offshore facility the company has delivered.

"This accomplishment is the result of the close work between MODEC and COSCO and cooperation with JVPC that was maintained throughout the project. We are proud of our collaboration," says Kenji Yamada, President and CEO of MODEC, Inc.

MODEC was responsible for the engineering, procurement, construction, installation and commissioning of the FSO RANG DONG MV17, and will own and operate the FSO under a 9-year agreement with the field operator: Japan Vietnam Petroleum Company Limited (JVPC).

The FSO will be located in the Rang Dong Field, Block 15-2, offshore Vietnam, approximately 135 kilometers off the southeast of Vung Tau City.

First Oil is expected in September. The unit has a storage capacity of 350,000 barrels and a total inlet capacity of 60,000 barrels per day. The FSO will be installed approximately 60 meters water depth and has an external turret supplied by SOFEC, Inc.