MODEC to Supply New-Built FSO for KNOC's Rong Doi Field

MODEC, Inc. has received a Letter of Intent from Korea National Oil Corporation (KNOC) for the supply of a Floating Storage and Offloading vessel for KNOC's Rong Doi / Rong Doi Tay fields offshore Vietnam together with Petroleum Technical Services Company, a subsidiary of Vietnam Oil and Gas Corporation (Petrovietnam) and Mitsui & Co., Ltd. as consortium. The Letter also includes the time charter of the FSO to KNOC for seven years with maximum thirty years operation.

The Rong Doi (Twin Dragon) and Rong Doi Tay (Twin Dragon West) fields are located approximately 320 kilometers south east of Vung Tau on Block 11-2 of the Nam Con Son Basin. The FSO is planned to be installed in 85 meters of water and is designed to have receiving capacity of 18,000 barrels of condensate per day and storage capacity of 300,000 barrels. Condensate processed at Rong Doi Platforms will be loaded to the FSO via flexible riser. The consortium (MODEC/PTSC/Mitsui) is responsible for the engineering, procurement, construction, installation, commissioning and operations for the FSO including the external turret mooring system. The consortium will own and operate the FSO for seven years with additional twenty three 1-year options.

"When we complete this FSO project, we will be operating three FPSO/FSO vessels in Vietnam. We look forward to working with KNOC to achieve on-time completion and to initiate the operations that will follow," said Kenji Yamada, President and CEO of MODEC, Inc.

MODEC is a turnkey supplier of Floating Production, Storage and Offloading vessels, Floating Storage and Offloading vessels, Tension Leg Platforms (TLPs) and production semisubmersibles for the offshore oil and gas industry. MODEC currently operates 7 FPSOs and 1 FSO and an additional unit will commence operations in the first half of 2005.