JULY 10, 2013 — IHC Merwede has signed two new contracts for the EPC (engineering, procurement and construction) delivery of offloading system packages for five FPSO vessels (floating production storage and offloading). The first of these packages will be placed on to one of MODEC's FPSO vessels under its lease agreement with Petrobras. The others have been ordered for the conversion of four additional FPSO vessels for Petrobras by the Brazilian offshore shipbuilding company, Estaleiro Enseada do Paraguaçu SA (EEP).

Each FPSO offloading system package will be supplied by IHC Merwede's Offshore division and consist of the following extensive range of advanced equipment: two offloading hose reel assemblies; two tandem mooring systems; one emergency offloading station; two hydraulic systems; and other ancillary equipment.

All five FPSO vessels will be capable of processing around 150,000 barrels of oil per day. They will each have a total storage capacity of around 1.6 million barrels and be moored in deepwater fields located in the Santos Basin, off the coast of Brazil. The new IHC Merwede-supplied systems will allow the FPSOs to offload approximately one million barrels of oil to shuttle tankers within a 24-hour period.

"IHC Merwede is delighted to confirm these two contracts with MODEC and EEP for the supply of new offloading systems for the FPSO vessels in Brazil," says René Raaijmakers, IHC Offshore's Commercial Director. "These provide further evidence that IHC Merwede is firmly established for the design and development of advanced equipment for the FPSO market and offshore industry at large.

"We have enjoyed a long and successful relationship with MODEC, and this is set to continue thanks to the reliability and efficiency of our production processes and products. In turn, this has been recognised by EEP, which has entrusted IHC Merwede with a valuable order that will provide 'the technology innovator' with an additional base for direct deliveries into the Brazilian market."