MODEC, Inc. (MODEC) announced today that OSX 3 Leasing B.V. has signed an EPCI contract for the supply of the OSX-3 FPSO, a Floating, Production, Storage, and Offloading (FPSO) unit to be utilized within block BM-C-39 of the Campos Basin, offshore Brazil, on the Waikiki Pero Inga fields. OSX 3 Leasing B.V. is a subsidiary of OSX Brasil S.A., an EBX Group Company. The Letter of Intent was issued to MODEC on June 1, 2011.

MODEC will be responsible for the engineering, procurement, construction, mobilization, installation, and commissioning of the FPSO, including topsides processing equipment, hull and marine systems, and the external turret mooring (designed and constructed by its subsidiary, SOFEC). The complete unit will be delivered to OSX in Brazilian waters in the third quarter of 2013, with a First Oil target of late September 2013.

The FPSO will be moored in approximately 110 meters water depth, have a storage capacity of 1.3 million barrels, be capable of processing 100,000 BOPD of heavy oil from the Campos Basin reservoir, generate approximately 60 MW of power, and provide for 150,000 BWPD of seawater treatment and injection.

This is MODEC's first FPSO for OSX 3 Leasing B.V. and is the eighth FSO/FPSO MODEC will provide 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, the FPSO Cidade de Santos MV20, and the FPSO Cidade de Angra dos Reis MV22. MODEC is constructing the FPSO Cidade de Sao Paulo MV23, which is scheduled for delivery to the giant pre-salt region of the Santos Basin in the fourth quarter of 2012.

"MODEC is very proud to be supplying our first unit to OSX 3 Leasing B.V. for use on OGX's Campos Basin fields. We are excited about the opportunity to work with this new Brazilian company," said Toshiro Miyazaki, President & CEO of MODEC, Inc.

The information contained in this news release is true and accurate at the time of publication; however, it may be subject to change without prior notice.

Founded in 1968, MODEC is a general contractor specializing in engineering, procurement, construction and installation as well as operation and maintenance of floating production systems including Floating Production Storage and Offloading (FPSO) vessels, Floating Storage and Offloading (FSO) vessels, Tension Leg Platforms (TLPs), Production Semi-Submersibles, Mobile Offshore Production Units (MOPUs) and other new technologies that will be required to meet the offshore industry's new challenges. MODEC also provides SOFEC turret mooring systems, SOFEC spread mooring systems and SOFEC import/export terminals (CALM buoys).

MODEC has delivered more than 30 floating production units and owns and operates more than a dozen FPSO/FSOs around the world. MODEC has an additional two FPSOs under construction, one of which MODEC will own and operate. MODEC has delivered five TLPs. MODEC was recognized by the Offshore Technology Conference for innovative technology for its MOSES Self Stable Integrated Platform (SSIP) TLP.

The FPSO OSX-3 shall join the offshore production fleet owned and operated by OSX Brasil S.A. (Bovespa: OSXB3), a Brazilian publicly held corporation focused in the supply of equipment and services to the Brazilian offshore oil and gas industry. OSX is developing the largest shipyard in the Americas and has an estimated order book of 48 offshore production units, amounting US$ 30 billion approximately, to serve the production demand of its client and sister company OGX, responsible for the largest private-sector exploratory campaign in Brazil.