The Schahin Group and MODEC, Inc. Land Guara FPSO for Petrobras and the companies of Consortium BM-S-9

Tokyo, Aug. 23, 2010

MODEC announced today that Petrobras, through its wholly owned subsidiary PNBV, on behalf of Consortium BM-S-9, has signed a letter of intent for the supply, respectively, charter, and operations of a Floating, Production, Storage, and Offloading (FPSO) vessel for the BM-S-9 (Guara) Block in the giant "pre-salt" region of the Santos Basin ("Letter of Intent"). The BM-S-9 block is under concession to a consortium formed by Petrobras (45%), BG (30%), and Repsol (25%).The Letter of Intent was issued to the Schahin Group and MODEC, Inc., who have partnered for the latest leased FPSO. This is the first venture between the Schahin Group and MODEC, Inc.

The Schahin Group and MODEC, Inc. are responsible for the engineering, procurement, construction, mobilization, and operation of the FPSO, including topsides processing equipment as well as hull and marine systems. SOFEC will design and provide the spread mooring.

MODEC will convert the VLCC Radiant Jewel into the FPSO Cidade de Sao Paulo MV23. The FPSO will be capable of processing 120,000 barrels of oil or 150,000 barrels of total fluids per day.

Scheduled for delivery during the 4th quarter of 2012, the FPSO will be installed in the Guara field .

This is the seventh vessel MODEC will provide and operate in Brazil. MODEC is currently operating the FPSO Fluminense, the FPSO Cidade do Rio de Janeiro MV14, the FSO Cidade de Macae MV15, the FPSO Cidade de Niteroi MV18, and the FPSO Cidade de Santos MV20. The FPSO Cidade de Angra dos Reis MV22 is currently under construction and scheduled to be installed in the fourth quarter of 2010.

"This is our second vessel for Petrobras in the pre-salt discoveries and we hope to participate with Petrobras in future production units for this exciting area," said Nobuhiro Yaji, President and Co- CEO of MODEC, Inc.

The Schahin Group has a significant presence in the drilling services market and has been working with Petrobras Group and Consortia of which Petrobras has been participating since 1982. The Schahin Group is pleased to expand in to production services via the partnership with MODEC and Petrobras Group and Consortia in which Petrobras participates.