Japan's MOL hikes stake in MODEC

Japanese shipping company Mitsui O.S.K. Lines (MOL) has completed the purchase of an additional 89,500 shares of Tokyo-based MODEC, a supplier and operator of offshore floating platforms, MOL announced on August 20. Along with the 10.1mn shares acquired in June 2023, MOL now holds a 15% stake in MODEC, making it an equity-method affiliate.

MODEC is a leading company in the offshore oil and gas development industry, covering the entire process from engineering, procurement, construction, and installation (EPCI) of floating production, storage, and offloading (FPSO) systems. MOL has long recognised the potential of offshore resources and energy and has partnered with MODEC in the FPSO business to contribute to the stable supply of energy, the company said.

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 strengthen 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 decarbonisation,” MOL stated.

Future cooperation, not limited to the FPSO business, will leverage MODEC's expertise in hydrographic condition analysis and the design of floating structures and moorings, alongside MOL's extensive experience in offshore solutions, MOL added.