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GE Gas Turbines for FPSO

Maritime Activity Reports, Inc.

May 1, 2007

GE signed a contract to provide MODEC with three LM2500+G4 aeroderivative gas turbine generators for use on a floating production storage and off-loading (FPSO) vessel in Brazil’s Campos Basin.

Using the standardized package configuration of its commercial marine units, GE’s LM2500+G4 gas turbine generators offer substantial weight and space savings as compared to other similar units in the industry. Each of the MODEC units is site rated at 27.8 megawatts and will operate in simple-cycle mode. Natural gas will be the primary fuel with diesel as the backup fuel.

Considered the largest oil reserve in the Brazilian continental shelf, Campos Basin covers an area of approximately 100,000 square kilometers and stretches from the State of Espirito Santo to Cabo Frio, on the northern coast of Rio de Janeiro State. Total reported daily production of Campos Basin is approximately 1.1 million barrels of oil and 17.36 million m3 of natural gas per day.

MODEC will operate the FPSO for Petróleo Brasileiro S.A. and it is expected that the vessel will be capable of processing 100,000 barrels of oil per day, with an expected gas compression capacity of 124 million cubic feed per day with 1.6 million barrels of oil storage capacity.

The equipment, which will be manufactured at GE’s Houston, Texas and Evendale, Ohio facilities, will be shipped by the end of the first quarter of 2008. The FPSO is expected to be operational at the end of 2008.

The standardized LM2500+G4 package selected by MODEC offers a complementary choice to the full API specification solution provided by GE Oil & Gas and generally utilized in offshore operations. GE’s Oil & Gas business has provided power and process equipment for some of the latest and most challenging FPSO projects, including: Dalia in 4,900 feet and Kizomba A and B in 3,400 feet, both offshore Angola; Erha in 3,900 feet offshore Nigeria; and Frade in 3,600 feet offshore Brazil.

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