A Modec FPSO: Elang floater calls it a day.
Modec floater calls it a day
Modec Venture 1 floating production, storage and offloading vessel has been delivered to a scrap buyer in Karimun, according to a source close to the development.
The floater was sold for less than $10 million and will be towed to Bangladesh for demolition, the source said.
Modec decided to scrap the vessel after talks on an Australian charter fell through. The Tokyo-based floating production specialist has provided for an extraordinary loss of about 3 billion yen from the disposal of the floater.
Modec Venture 1 was released from the Timor Gap JPDA Elang and Kakatua oilfields in July 2007 after a 10-year charter.
The floater later secured a letter of intent for a fixed term charter of three years plus options for up to two years’ extension with Australian outfit AED Oil at the Puffin project prior to the sale of a controlling project stake in the oilfield to Sinopec.
However, no firm contract was signed subsequently on the Puffin charter.
Modec could not be reached for comments as of press time.