Agreement Reached for Ultra-Deepwater FPSO Project

March 22, 2013

MODEC, Inc., Mitsui & Co., Ltd., Mitsui O.S.K. Lines, Ltd. and Marubeni Corporation have agreed that Mitsui, MOL and Marubeni will invest in a long-term charter business (“Project”) operated by MODEC for the purpose of providing a floating production, storage, and offloading system (FPSO) for use in the Iracema Norte area of a pre-salt oil field off the coast of Brazil.

Construction of the FPSO will involve the conversion of a VLCC (very large crude oil carrier), which will be renamed “FPSO Cidade de ITAGUAÍ MV26” upon its completion. It will be deployed to the Iracema Norte area of the BM-S-11 block off the coast of Brazil in the fourth quarter of 2015.

The FPSO will be chartered to Tupi B.V. for 20 years under this chartering agreement signed in February 2013.

MODEC and Mitsui have already provided three FPSOs for pre-salt oil fields, and this will be their fourth pre-salt related FPSO chartering project. It is the third project of its type for MOL and the second for Marubeni.

Press Release, March 22, 2013