MOL, Mitsui Invest in Modec FPSO Project in Mexico

MODEC FPSOThe image is for illustration purposes only and is not related to Eni Mexico Area 1 FPSO. Image Courtesy: MODEC

Japan’s Mitsui O.S.K. Lines (MOL), Mitsui and Modec have reached an agreement to jointly provide a floating production, storage, and offloading system (FPSO) in Mexico.

The FPSO would have an oil processing capacity of 90,000 barrels per day and a gas processing capacity of 75 million cubic feet per day.

Under the deal, the parties would provide the unit, to feature a storage capacity of 900,000 barrels, for use in the Area 1 block offshore Mexico.

Construction of the FPSO is planned to be completed in 2021, and the vessel will be deployed for the development of the Area 1 block at water depths of about 32 meters.

Mitsui and MOL invested in MV34, a Dutch company established by Modec, which will engage in FPSO leasing, operations and maintenance services. The companies signed a loan agreement for the project on April 12, 2019.

In December 2018, MV34 concluded the charter agreement with Eni Mexico, the operator of Area 1 block and a subsidiary of Eni S.p.A. The charter contract initially runs for 15 years, with options for extension every year thereafter up to 5 additional years.

The loan agreement on a project finance basis, signed by a number of finance institutions, is the first project finance for the FPSO project in Mexico.

The transaction concluded with MOL holding 30 percent of the MV34 stake, while Mitsui and Modec each have a 35 percent share.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Sep 2019 >>
MTWTFSS
26 27 28 29 30 31 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 1 2 3 4 5 6

Defence Safety Conference 2019

The Defence Safety Conference returns to London this October as the only event solely dedicated to enhancing safety across all aspects of defence.

read more >

Shipping Transformation Asia

Shipping Transformation Asia will provide a platform for future-focused discussion in the shipping,…

read more >

3rd MarSat Workshop

The MARSAT project wants to operationalise and standardise EO products and aims to develop…

read more >

Global Sustainable Shipping Forum 2019

The event will provide valuable insights from conference sessions, great networking opportunities and will offer…

read more >