MODEC, Mitsui, MOL, Marubeni collaborate on FPSO for Brazil

MODEC Inc., Mitsui & Co. Ltd., Mitsui O.S.K. Lines Ltd. (MOL), and Marubeni Corp. have agreed that Mitsui, MOL, and Marubeni will invest in a long-term charter business promoted by MODEC to provide an FPSO in the Carioca area of a presalt oil field off Brazil.

Offshore staff

HOUSTONMODEC Inc., Mitsui & Co. Ltd., Mitsui O.S.K. Lines Ltd. (MOL), and Marubeni Corp. have agreed that Mitsui, MOL, and Marubeni will invest in a long-term charter business promoted by MODEC for the purpose of providing an FPSO in the Carioca area of a presalt oil field off the coast of Brazil.

Based on the agreements, Mitsui, MOL, and Marubeni will invest in Carioca MV27 BV, a Dutch company established by MODEC, and the companies will proceed with the project jointly. MV27 has signed a long-term chartering agreement for the deployment of the vessel by the BM-S-9 Consortium, comprising Petrobras (45%), BG Group (30%), and Repsol Sinopec Brasil SA (25%). The FPSO will be chartered for 20 years under an agreement signed in December.

The FPSO will be namedFPSO Cidade de Caraguatatuba MV27, and it will be deployed to the Carioca area of the BM-S-9 block off the coast of Brazil in 3Q 2016. The area is part of a deepwater oil field located 300 km (187 mi) south of Rio de Janeiro. The oil is contained in the presalt layer located 5,000 m (16,404 ft) beneath the seabed.

The project is the third occasion under which the companies have collaborated to operate FPSOs for presalt oil fields. The Schahin Group, the joint bidder with MODEC for this project as the local partner in Brazil, has the option to invest up to 15% in MV27 before the FPSO charter begins.

12/20/2013

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