MODEC Signs Contract for Shell FPSO in Brazil

Japan’s MODEC Inc. said that it has signed a purchase and sales agreement, as well as a 20-year contract for the operations and maintenance of a floating production storage and offloading unit (FPSO) for the Gato do Mato oil field, offshore Brazil, with Shell Brasil Petróleo Ltda.

MODEC will be responsible for the design of the hull and all related topside facilities for the FPSO. The produced stabilized crude will be stored in the FPSO's tanks, and the oil will be offloaded to shuttle tankers, the company said in a news release.

The FPSO will feature a custom-made “next generation hull” to meet the unit's 25-year design life, MODEC said.

The signing follows the execution of the front-end engineering and design (FEED) contract for the FPSO signed in March 2024, according to the company.

When installed, FPSO Gato do Mato will be capable of producing 120,000 barrels of oil per day (bopd), as well as associated gas and water, the company said. The vessel will be moored at a water depth of approximately 6,561.7 feet (2,000 meters), around 124.3 miles (200 kilometers) south of Rio de Janeiro.

The FPSO Gato do Mato will be the 19th FPSO to be developed by MODEC for Brazil. It will be the second unit to be delivered directly to Shell by MODEC for operation in Brazil, according to the release.

FEED Contract for Carbon Capture Project

In February, MODEC entered into a FEED contract with Samsung E&A for an offshore carbon capture pilot project, using Carbon Clean’s modular CycloneCC technology.

The study envisages the installation of a carbon capture module on a MODEC FPSO vessel as a pilot, and it will be a first-of-a-kind deployment of CycloneCC in an onboard carbon capture setting, according to an earlier news release.

Koichi Matsumiya, MODEC Chief Technical Officer, said, “MODEC is proactively pursuing two targets through our R&D [research and development] activities. One is to provide a stable energy supply to society with minimum GHG [greenhouse gas] emissions, and another is to prepare for new floater solutions to bridge the society with alternative energies from oil and gas. We believe that the carbon capture technology proposed by Carbon Clean will be the key to achieve both of our targets. We will make our best efforts to progress the readiness level of this technology by utilizing our experience at offshore and would like to materialize this technology at offshore in the shortest possible timeframe”.

Cheon Hong Park, Executive Vice President and Head of Sustainable Solutions Division for Samsung E&A, said, “Samsung E&A is thrilled to combine forces with MODEC and Carbon Clean on this pivotal carbon capture pilot project. This initiative aligns with our company’s mission to address societal challenges through our technological solutions. It marks a significant milestone with the first application of Carbon Clean’s innovative carbon capture technology in the marine industry. We are confident that the successful execution of this project will play a key role in advancing MODEC’s mid-term decarbonization plan while accelerating the commercialization of Carbon Clean’s CycloneCC technology. We look forward to delivering a successful project and strengthening our partnership for a cleaner, more sustainable future”.

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