Mitsui, MOL and Marubeni Invest into Modec’s FPSO Chartering Business

Japan’s FPSO builder Modec has announced that Mitsui, MOL and Marubeni today entered into definitive agreements to invest in a long-term charter business operated by MODEC for the purpose of providing a floating production, storage, and offloading system (FPSO)  for use in Brazil. The offshore area is operator by Petrobras.

Construction of the FPSO will involve the conversion of the VLCC Alga (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 area is part of a deepwater oil field located approximately 300 km south of Rio de Janeiro, Brazil. The oil is contained in the pre-salt layer approximately 5,000 m beneath the seabed. 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.

The Schahin Group, the joint bidder with MODEC for this Project as the local partner in Brazil, plans to invest up to 15% in MV26 by the commencement of the FPSO charter.