FPSO Cidade de Angra dos Reis MV22 modec

FPSO Cidade de Angra dos Reis MV22, a converted VLCC operating as an FPSO in the Tupi field off Brazil. Image: MODEC

TOKYO – MODEC announced today that Mitsui & Co., Mitsui O.S.K. Lines, and Marubeni Corporation have agreed to invest in a MODEC-operated, long-term FPSO charter business in the Iracema Norte area of a pre-salt oil field off the coast of Brazil.

The letter of intent was announced in November 2012 and the 20-year charter agreement was signed in February between Dutch field operator consortium Tupi B.V., jointly owned by Petrobras Netherlands B.V. (65%), BG Overseas Holding Ltd. (25%), and Galp Sinopec Brazil Services B.V. (10%).

Construction of the FPSO will involve the conversion of the VLCC Alga, 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.

The FPSO will use a spread mooring arrangement which maintains the vessel on station and with a fixed heading.  This eliminates the need for a turret structure and swivel stack commonly found on other FPSOs.

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.

(*) Iracema Sul area was changed its name from Cernambi Sul area which was described in the news statement released by the Companies on March 22, 2012.

Outline of FPSO

Oil processing capacity 150,000 barrels per day
Gas processing capacity 280 million cubic feet per day
Oil storage capacity 1,600,000 barrels
Mooring type Spread mooring (at a depth of 2,240 meters)

Controlling stake of MV26

Before the investment by the Schahin Group After the investment by the Schahin Group
MODEC, Inc. 29.4% 25.0%
Mitsui & Co., Ltd. 32.4% 27.5%
Mitsui O.S.K. Lines, Ltd. 20.6% 17.5%
Marubeni Corporation 17.6% 15.0%
Schahin Group - 15.0%

*Schahin will have a 15% stake at most in MV26. If under 15%, the ratio of the other shareholders will be increased on a pro-rata basis.

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