MODEC to supply FPSO for BP's Angola Block 31

Tokyo, Jul. 31, 2008

MODEC, Inc. is pleased to announce it has been awarded a Frame Agreement from BP for the supply of an FPSO under an EPCI contract for the PSVM (Plutão, Saturno, Vênus and Marte) Development in Block 31 offshore Angola. The FPSO will have production capacity of 157,000 barrels per day and first oil from the development is scheduled in 2011. The proposed contract also provides BP an option for the provision of a second future FPSO in the area.

This event represents a significant milestone for MODEC in attracting BP and Sonangol as clients and gaining entry in to the important growth market in Angola.