MODEC, Inc. has secured a letter of intent from Petrobras for the charter and operation of a new FPSO in Brazil's Campos Basin, projected to generate $1.2 billion in revenues.

Target Information

MODEC, Inc. (TSE: 6269) is a prominent player in the offshore oil and gas sector, specializing in floating production storage and offloading (FPSO) units. The company has made significant strides in developing and managing offshore facilities designed to optimize oil extraction. Recently, MODEC has received a letter of intent from Petróleo Brasileiro S.A. (Petrobras) for the charter and operation of a new FPSO in Brazil's Campos Basin, marking a key milestone in their collaboration.

This project entails the construction of an FPSO with a processing capacity of 100,000 barrels of oil per day, gas compression capabilities of 124 million cubic feet per day, and an oil storage capacity of 1.6 million barrels. The lifetime revenues from the charter and operation of this FPSO, including potential option periods, are projected to reach up to $1.2 billion.

Industry Overview in Brazil

Brazil's oil and gas industry is one of the most dynamic sectors in Latin America, significantly bolstered by substantial offshore reserves located in areas such as the Campo