COSCO Snags FPSO Conversion Contract

COSCO (Dalian) Shipyard Co., Ltd. (being a subsidiary of COSCO Corp.'s 51% owned subsidiary, COSCO Shipyard Group Co., Ltd) has secured a major contract to convert an 18 year old Very Large Crude Carrier (VLCC) tanker, MT "SUNRISE IV," to a Floating Production Storage and Offloading (FPSO) vessel for Mitsui Ocean Development & Engineering Co., Ltd (MODEC).

The conversion contract involves repair and conversion of the vessel to FPSO including topside integration and commissioning. This FPSO is scheduled to be re-delivered in mid 2010. The FPSO is designed to operate for 20 years without dry-docking and it will have a production capacity of 16,000 M3 oil per day, 5,000,000 Nm3 gas per day, and a storage capacity of 1,600,000 barrels of oil.

The FPSO is scheduled to be re-delivered to MODEC around mid 2010 and for deployment in the Petrobras' Tupi Oil Field, near Brazil in water depths of between 2,200 meters and 2,500 meters.