Bijupira and Salema Fields Offshore Brazil Achieve First Oil

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August 12, 2003

MODEC International LLC, a consolidated subsidiary company of MODEC Inc., Tokyo (TSE:6269) has initiated production from the Bijupira and Salema fields offshore Brazil for Shell Brasil Ltda. The contract included the supply of a Floating, Production, Storage and Offloading (FPSO) vessel, external turret mooring system, flowlines, risers and five Subsea manifolds. The EPCI contract also includes 13 years of operations that will be undertaken by MODEC. The FPSO Fluminense has an oil processing capacity of 81,000 barrels of oil per day, gas handling of 75 million cubic feet per day, water injection of 92,000 barrels per day and storage capacity of 1.2 million barrels.

The Bijupira and Salema fields are located adjacent to each other in the Campos Basin, some 175 miles from Rio de Janeiro, in water depths ranging from approximately 470 to 800 meters. Artificial lift is required to raise the reservoir fluids to the surface for processing. Reservoir pressure will be maintained by injection of seawater at high pressure to assist oil recovery.

"We are pleased to have successfully completed this EPCI, full field development contract," said Shashank Karve, President and CEO - MODEC International LLC. "We look forward to working with Shell and the local Brazilian industry in the successful operations of the FPSO Fluminense for the next 13 years."


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