On Friday, August 23, 2019, MODEC, Inc. ("MODEC") informed Petróleo Brasileiro S.A. ("PETROBRAS") that, after inspection at the external tanks, cracks were identified at the hull of FPSO Cidade do Rio de Janeiro, at the Espadarte field, in the Campos Basin, 130 km off the coast of Brazil. During the weekend, 1.2 cubic meter of residual oil leaked from the unit, which was identified and recovered. This Monday, August 26, 2019, in a new overflight, the presence of oil at sea was perceived, in an estimated amount of 6.6 cubic meters.

Seven vessels are already at location, for recovery and dispersion, aside from four support vessels and one chopper for overflights. The increase on the extension of the cracks was identified since the beginning of the event, yet the vessel continues to be with stable positioning and safe conditions, under permanent monitoring of MODEC and PETROBRAS.

FPSO Cidade do Rio de Janeiro is out of production since last year and in departure procedure from Espadarte location. All crew members were disembarked over the period between August 24 and 26, 2019 and arrived safely at shore.