FPSO Guanabara MV31(Courtesy:Modec)
Mitsui O.S.K. Lines, Ltd. (MOL) announced today that it has completed the purchase of an additional 89,500 shares of common stock in MODEC, Inc., a prominent player in the offshore oil and gas industry. With this acquisition, MOL now holds a 15% stake in MODEC, solidifying its position as an equity-method affiliate of the company.
This strategic move follows MOL’s initial acquisition of 14.86% of MODEC shares in June 2023, which was part of a broader business alliance aimed at enhancing collaboration between the two companies in the Floating Production, Storage, and Offloading (FPSO) sector. MODEC, with its extensive experience in the engineering, procurement, construction, and installation (EPCI) of FPSO systems, has been a key player in offshore oil and gas development for over two decades. Additionally, the company’s expertise extends to long-term leases and operations & maintenance (O&M) services.
MOL’s increased investment in MODEC underscores its commitment to the offshore energy sector, particularly in an era where decarbonization is becoming increasingly critical. By making MODEC an equity-method affiliate, MOL aims to foster closer ties between the two companies, leveraging their combined expertise to drive innovation and competitiveness in offshore solutions.
The partnership between MOL and MODEC is expected to go beyond the FPSO business, integrating MODEC’s cutting-edge technology in hydrographic condition analysis and floating structure design with MOL’s extensive experience in offshore operations. This collaboration will not only enhance the companies’ offshore business capabilities but also contribute to the stable supply of energy, ensuring sustainable growth and prosperity.
As a strategic partner, MOL intends to utilize this strengthened relationship with MODEC to further its vision of being a global social infrastructure company. By combining their management resources, MOL and MODEC are poised to make significant contributions to the offshore industry and the broader goal of sustaining people’s lives through reliable energy solutions.
