Langsa write-off for Modec

Japanese floating production giant Modec is expecting to book a loss of 2.5 billion yen ($22 million) by writing off its investment in Indonesia's offshore Langsa oilfield.

The Tokyo-based company said Langsa is the only project in the world in which Modec holds the concession. Stable production of oil continues at between 1000 barrels per day and 2000 bpd. To cover for the write-off loss, Modec plans to sell some of the securities it holds, and expects to book a net gain of 700 million yen ($6 million) on both a consolidated and non-consolidated basis. Modec will focus on floating production systems, which shows solid growth, and will continue to expand its businesses as a global leader in this field. The Langsa field has a chequered past, and is currently operated by a joint venture between Indonesia's Medco and Japan's Mitsui, who lease a small floating production vessel from Modec.

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