August 26, 2008

Modec Wins Petrobras’ Order for Oil Facility

Tokyo, Aug. 26 (Jiji Press)--Japan's Modec Inc. said Tuesday it has won an order to build and lease an offshore oil facility from Brazil's Petroleo Brasileiro SA, or Petrobras.

The value of the deal is likely to exceed 100 billion yen. The Japanese engineering firm did not disclose the exact figure.

Modec will build a floating production, storage and offloading (FPSO) vessel by converting an existing oil tanker.

The FPSO vessel will be installed in the Tupi area in the Santos Basin, some 300 kilometers from the port city of Rio de Janeiro.

The facility will be capable of processing 100,000 barrels of crude oil per day. Its oil storage capacity will reach 1.6 million barrels.

The facility will be owned by a Modec affiliate and leased to Petrobras for at least 15 years. Operations are set to start near the end of 2010.

The Tupi area has huge oil deposits some 5,000-6,000 meters below the ocean floor, located under a rock salt layer. Recoverable oil reserves there are estimated at 5 billion to 8 billion barrels.

Petrobras is the world's first company to explore offshore oil deposits under a rock salt layer. The project is expected to require more than 10 FPSOs.END

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