Loan for FPSO Operation and Maintenance Service Business of MODEC’s Brazilian Subsidiary
Supporting Overseas Business Expansion of Japanese Offshore Resource Development Industry

• Region: Latin America and the Caribbean
• Manufacturing and Services
• Marine and Aerospace
• Overseas Investment Loans

1. The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed today a loan agreement amounting to up to USD96 million (JBIC portion) with MODEC, Inc. (MODEC). The loan is co-financed with Sumitomo Mitsui Banking Corporation, bringing the total co-financing amount to USD160 million.
     
2. The loan is intended to finance the funds necessary for MODEC SERVIÇOS DE PETRÓLEO DO BRASIL LTDA. (MdB), a Brazilian subsidiary of MODEC, to conduct the operation and maintenance service business of floating production systems including FPSO^*1 systems in multiple countries, including Brazil.
     
3. MODEC is the only company headquartered in Japan that provides a total service of floating production systems, including FPSO systems, from design and construction to operation and maintenance. MODEC views Brazil, where the demand for new FPSO systems is expected to increase, as one of the most important markets^*2, and MdB is a core subsidiary in Brazil for the MODEC group. The loan will support MODEC in improving its technologies regarding the operation and maintenance of floating production systems, including FPSO systems, and in increasing its business management know-how, thereby contributing toward maintaining and improving the international competitiveness of Japanese companies in the offshore resource development industry.
     
4. As Japan’s policy-based financial institution, JBIC will continue to provide financial support to assist Japanese companies in the overseas expansion of their businesses by drawing on its various financial facilities and schemes for structuring projects and by performing its risk-assuming function.
     

Note

1. *1 
   A floating production, storage and offloading (FPSO) system is a floating vessel used in the first stage of processing crude oil produced at an oil well. It separates associated gas and water, and also stores and offloads oil.
2. *2 
   JBIC has provided loans for long-term FPSO vessel chartering services conducted by multiple companies including MODEC for Petróleo Brasileiro S.A., a state-owned oil company in Brazil.