Mitsui OSK Lines acquires additional interest in FPSO design firm

Japan's Mitsui OSK Lines (MOL) has completed the purchase on the market of 89,500 shares of common stock of local engineering company MODEC. Along with the 10,162,300 shares already acquired in June 2023, MOL now holds a 15 per cent stake in MODEC and will make it an equity-method affiliate.

MODEC specialises in the offshore oil and gas development industry, engaging in the entire process from engineering, procurement, construction and installation (EPCI) of floating production storage and offloading (FPSO) systems to long-term leases and operations and maintenance (O&M) for more than 20 years. MOL has long focused on the potential of offshore resources and energy, and has teamed up with MODEC in the FPSO business.

In June 2023, MOL acquired a 14.86 per cent stake in MODEC through a third-party allotment of new shares and signed a business alliance agreement. MODEC will now become an equity-method affiliate of MOL, with the goal of further developing both companies' offshore businesses.