MODEC’s FSO RANG DONG MV17 Achieves First Oil

Tokyo, Nov. 5, 2008

MODEC announced today that the FSO RANG DONG MV17, owned and operated by MODEC and leased to Japan Vietnam Petroleum Co., Ltd. (JVPC), achieved first oil from the Rang Dong Field offshore Vietnam. The Ready for First Oil Certificate was received on November 1, 2008, which marks the beginning of the 9 year charter.

The FSO RANG DONG MV17 is a new-build FSO and is the first project MODEC has completed with COSCO (Zhoushan) Shipyard Co., Ltd.

"We are pleased to have successfully installed the FSO and achieved first oil," said Kenji Yamada, President and CEO of MODEC, Inc. "It is the fifth vessel we have delivered offshore Vietnam and we have an additional FPSO that is currently being installed."

The Rang Dong field is located approximately 135 kilometers southeast of Vung Tau City on Block 15-2. The FSO is installed in approximately 60 meters water depth. The unit has a storage capacity of 350,000 barrels and a total inlet capacity of 60,000 barrels per day.

MODEC was responsible for the engineering, procurement, construction, installation and commissioning of the FSO, including the external turret mooring system which was supplied by SOFEC, Inc., a MODEC Group Company.