Mitsui O.S.K. Lines, Ltd. completed the purchase on the market of 89,500 shares of common stock of MODEC, Inc., and along with the 10,162,300 shares already acquired in June 2023, MOL now holds a 15.00% stake in MODEC and will make it an equity-method affiliate, according to the company's release.
MODEC is a leading company 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 & 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 as a way to contribute to the stable supply of energy.
In June 2023, MOL acquired a 14.86% stake in MODEC through a third-party allotment of new shares and signed a business alliance agreement. The additional acquisition announced today will build stronger ties between the companies by making MODEC an equity-method affiliate of MOL, with the goal of further developing both companies' offshore businesses in the era of decarbonization. Future cooperative moves, not limited to the FPSO business, will bring together MODEC's world-leading technology in hydrographic condition analysis and design of floating structures and moorings and MOL's long-standing expertise in offshore solutions.
Through this additional acquisition, MOL will further strengthen its relationship with MODEC as a strategic partner, mutually leverage its management resources to enhance the competitiveness of the offshore business, sustain people's lives, and ensure a prosperous future as a global social infrastructure company with its origins in the sea.