MODEC FSO hits One Billion Barrel offloading mark and 10 years of continuous operations

Houston, Oct. 9, 2008

MODEC's FSO Ta'Kuntah has reached a new milestone in the industry: offloading one billion barrels of oil to 1,745 export tankers. The FSO, owned and operated by MODEC and leased to PEMEX Exploration and Production, celebrated ten years of continuous operation on September 14, 2008. Notable achievements include: one billion barrels offloaded as of August 26, 2008; first FSO in the Gulf of Mexico; 100% uptime throughout its operation; and no incidents of oil pollution.

"We are extremely proud of the FSO Ta'Kuntah success", said Kenji Yamada, President and CEO of MODEC, Inc. "Many of the shore staff and the FSO's crew have been with the vessel for the entire 10 years of operation - their dedication is a huge factor in our success."

The FSO Ta'Kuntah is a converted ultra-large crude carrier (ULCC) and is capable of storing more than two million barrels of oil. She is permanently moored in 80 meters water depth in the Cantarell Field, Bay of Campeche, off Mexico's Yucatan peninsula. SOFEC designed, engineered and manufactured the mooring system which consists of an external bow-mounted turret capable of withstanding 100-year hurricane conditions. The offloading system allows export tankers to moor either in tandem or side-by-side, both individually and simultaneously. The FSO is designed to handle 800,000 barrels of oil per day.

As a testament to FSO Ta'Kuntah durability and dedication of the crew, she offloaded to 42 tankers in August 2008.