MODEC plans to raise funds to support future FPSO activities by issuing new shares to MITSUI and Mitsui O.S.K. Lines (MOL), and forming a business alliance with MOL.
The company has special-purpose entities providing lease, operation and charters of floating production systems. Projects have been growing in scope and funds required for charter arrangements are surging, with further market growth expected in deepwater development.
MODEC has been looking to improve the creditworthiness of its charter projects and fundraising capability with financial institutions through enhancing its cooperation with MOL, and it plans to use the latter’s management resources and customer base to strengthening its offering for future floater projects.