MODEC Finds Partners for Brazil’s FPSO Charter Project

Business & Finance

Japan-based MODEC has reached agreements with four compatriot firms regarding an investment in an ultra-deepwater FPSO charter project for the Sepia Area off the coast of Brazil.

Under the deals, signed on January 9, Mitsui & Co., Mitsui O.S.K. Lines (MOL), Marubeni Corporation and Mitsui Engineering & Shipbuilding (MES) will invest in the long-term charter business currently promoted by MODEC.

Namely, the companies have agreed to invest in Sepia MV30 B.V. (MV30), a Dutch company established by MODEC. The firms would the proceed with the project jointly, with MODEC holding 20.1%, Mitsui & Co with 32.4%, MOL with 20.6%, Marubeni with 17.6% and MES with 9.3%.

On October 13, 2017, the Dutch MV30 entered into a long-term charter agreement with the Brazilian state oil company Petrobras, under which the FPSO would be deployed for 21 years.

The FPSO will be capable of processing 180,000 barrels of crude oil per day, 212 million standard cubic feet of gas per day, 240,000 barrels of water injection per day and has storage capacity of 1,400,000 barrels of crude oil.

It would be located in the giant “pre-salt” region of the Santos Basin some 250 kilometers off the coast of Rio de Janeiro, Brazil at a water depth approximately 2,200 meters.