MODEC and Toyo Engineering Corporation to establish joint venture

Source: press release, 5 August 2022

photo: MODEC
photo: MODEC

MODEC, Inc. has announced that MODEC and Toyo Engineering Corporation (TOYO) have executed the agreement for the establishment of a joint venture company – Offshore Frontier Solutions Pte. Ltd. – for the engineering, procurement, construction and installation (EPCI) business of floating production storage and offloading (FPSO) vessels. The establishment of the joint venture company is subject to obtaining official permits and approvals of relevant authorities.

MODEC is a provider of floating production solutions such as FPSOs to the offshore oil and gas industry. MODEC performs EPCI activities, and further by owning and operating its own FPSOs, it provides oil companies around the world with comprehensive and competitive solutions for oil and gas production services.

As offshore oil and gas development projects increase in scale and move into deeper waters, the durations of the client contracts for FPSOs have become long-term as well as FPSOs have increased in size and complexity. As one of the few companies that can address these large-scale FPSO projects, MODEC recognise the importance of enhancement of its engineering and project management capabilities to meet clients’ requirements and expectations. Moreover, MODEC aims to develop environmentally friendly technologies for next-generation FPSOs.

TOYO is a global engineering group that has rich EPC experience in industrial facilities, such as oil & gas development, refinery, petrochemicals, fertiliser and power generation. There are 6 autonomous EPC group affiliates widespread across the world. With this global network, TOYO is aiming for solutions emphasising both “Aim to realise an environmentally-friendly society” and “Enrich people’s lives”.

For the past 15 years, MODEC has been collaborating with TOYO, which boasts a robust track record as a global engineering group, on the topside EPC scopes for several FPSO projects. Through the establishment of the joint venture company MODEC and TOYO will further deepen the form of collaboration and jointly strengthen the engineering and project management capabilities in order to carry out the challenging large-scale FPSO projects, and the two companies jointly aim to strengthen the technological capabilities and competitiveness in the FPSO industry.

Furthermore, synergies between MODEC and TOYO are expected to be demonstrated in the exploration of new technology and product opportunities in growth markets as well as in the development of environmentally friendly FPSOs for realisation of decarbonised society.