Four Japanese Companies Join Modec in Sepia FPSO Deal

By Aiswarya Lakshmi January 9, 2018

Four Japanese companies will invest in a new company established by compatriot Modec with an aim to provide a floating, production, storage and offloading (FPSO) unit for the Petrobras-operated Sepia field offshore Brazil.

"MODEC, Mitsui, Mitsui O.S.K. Lines, Marubeni Corporation and Mitsui Engineering & Shipbuilding Co have agreed to jointly invest in a long-term charter business currently promoted by MODEC, for providing a FPSO in the Sepia Area, off the coast of Brazil," said a press release.

These companies have entered into related agreements for the FPSO project on January 9, 2018. The FPSO will be chartered for 21 years under this charter agreement which was signed on October 13, 2017.

Based on these agreements, Mitsui, MOL, Marubeni and MES will invest in Sepia MV30 BV, a Dutch company established by MODEC, and the companies will proceed with the project jointly.

MV30 has entered into a long-term charter agreement for the deployment of the FPSO with Petróleo Brasileiro SA, the Brazilian state oil company.

MODEC, Inc. will hold 20.1 percent of the project, while Mitsui 32.4 percent, MOL 20.6 percent, Marubeni 17.6 percent, and MES 9.3 percent.