Resilience, Leadership in Floating Production Systems: MODEC

Q: MODEC has a strong global presence in floating production systems. How would you describe the company’s current position and strategy in Mexico’s offshore oil and gas market?
A: Our presence in Mexico began in 1998 with the first FSO ever deployed in the country. In 2022, we started operations of FPSO MIAMTE MV34 at Area 1, the first offshore field operated by an International Oil Company in Mexican waters. 
Within Mexican territory, we are in different cities, including our logistics base and offices. We count on the dedication of a multidisciplinary team of just over 200 people to contribute together to local development. We would like to be part of this development, supporting a sustainable future and the creation of a better society. Mexico is a strategic country for MODEC and we intend to keep growing our operations in the region.

Q: What are the main opportunities MODEC sees in Mexico’s offshore sector today, particularly in deepwater and mature field developments?
A: Mexico is one of the largest oil producers in Latin America and has significant reserves, especially in deep and ultra-deep waters, which are still underexplored. In recent years, we have seen new opportunities coming up and increasing positive expectations for the future offshore, which will increase the demand for solutions to develop and produce those fields. We can partner with private and public players, under mixed contracts or assignments to help increase Mexico’s oil and gas production.

Q: How have the needs and expectations of your clients, both private operators and PEMEX, evolved in recent years, and how is MODEC adapting its services to meet these changing demands?
A: First, we see a trend of market opening and potential expansion of Mexico’s energy sector. The renewed openness to partnership models and the possibility of further market liberalization are expanding opportunities that now go from newly deployed solutions to including tie-backs, redeployments, and life-extension projects. In this context, it is expected that clients increasingly request more flexible commercial models, covering EPCI, lease and operate, or hybrid, for different production solutions. MODEC is totally capable of adapting to these schemes. 
MODEC offers the full spectrum, from concept selection through EPCI to operation, as we can bring tailored solutions to Mexican fields. In addition, companies are targeting higher, more reliable oil and gas output, and MODEC is aligning by leveraging our global production systems track record to the country, including operational excellence digital tools and ESG-aligned solutions, which translate for our clients as high-performance production and reliable operations. In short, as Mexico’s production outlook strengthens, demand for high-performance production assets grows, and the market opens further, MODEC is bringing its global experience and local commitment to deliver reliable and sustainable production solutions for Mexico. 

Q: MODEC is known for technological innovation in FPSOs and floating systems. What recent advances or digital solutions are being implemented to enhance safety, efficiency, and uptime in offshore operations?
A: MODEC is continuously investing in innovation and digital transformation to enhance the safety, operational efficiency, and reliability of its offshore units. The company integrates advanced solutions such as drones and ROVs for inspections, digital twins, artificial intelligence for corrosion management, and non-intrusive inspection technologies. In addition, it employs leak detection methods to reduce emissions. These initiatives aim to enhance the integrity, reliability, and safety of people and facilities, while also promoting the sustainability of its projects.
In recent years, digital tools have enabled greater operational efficiency, faster communication, better adaptability to market changes, and business growth. The company has a dedicated Digital & Analytics (DnA) team focused on developing innovative digital solutions that drive improvements not only in operations but also in management. DnA serves as the company’s central hub for digitalization initiatives, providing digital strategies and tools to all departments, delivering insights, applications, visualizations, integrations, automations, and more to end users.
MODEC also partners with Shape, a spin-off of the MODEC Group created to accelerate digitalization and the adoption of advanced technologies in offshore operations. Shape is responsible for developing solutions such as Shape Lighthouse, an AI-based system designed to increase reliability and productivity by centralizing all maintenance-related data and providing AI-driven recommendations. This helps reduce unexpected downtime and maintenance costs, while also mitigating risk exposure and lowering GHG emissions.

Q: What are the main operational or logistical challenges of executing offshore projects in Mexico, and how does MODEC address them while maintaining reliability and safety standards?
A: Offshore operations in Mexico present a unique set of challenges, including exposure to extreme weather conditions like hurricanes, as well as the need to meet specific geological requirements, such as the risk of seismic activity in certain regions.
To address these demands, MODEC designs and tailors its solutions to local operating conditions. A clear example is the FPSO MIAMTE MV34, developed for the Gulf of Mexico in partnership with Eni México. This vessel incorporates an unprecedented Disconnectable Tower Yoke Mooring System (DTYMS), a state‑of‑the‑art mooring solution engineered for shallow waters and capable of disconnection during extreme weather events, such as hurricanes. This capability enhances crew safety, safeguards the asset, and minimizes operational disruption.
Mexico’s development of deep and ultra‑deepwater resources is strategically important, yet the availability of assets, skilled labor, and proven know‑how remains limited. MODEC sees this as both a challenge and an opportunity. We pioneered the market with Mexico’s first FSO and the first private FPSO, and we are ready to leverage decades of deep and ultra‑deepwater experience to help safely and reliably accelerate hydrocarbon production in Mexico, while aligning with Energy Transition and sustainability objectives.

Q: As the global industry shifts toward decarbonization, how is MODEC integrating sustainability and low-carbon technologies into its offshore operations and vessel designs?
A: MODEC is investing in R&D, actively working to enhance operational processes and systems while introducing new technologies to upcoming units. This ensures that its entire fleet contributes to a cleaner and more responsible future, with a significant reduction in carbon footprint. 
FPSO MIAMTE MV34 already incorporates features to minimize GHG emissions. The facility operates with a closed Low Pressure flare and no routine venting, enabled by the installed Vapor Recovery Unit (VRU) that captures tank and process vapors and routes them safely to the compression system for export. This configuration materially reduces GHG emissions and enhances process safety by minimizing hydrocarbon gas releases and flammable atmospheres around vents. Complementing this, high‑efficiency flare tips and strict process/compression controls limit upset flaring. Additionally, low‑NOx gas turbines with waste heat recovery (WHRU) and variable‑speed drives improve energy efficiency. Lastly, mechanical/double seals and a leak detection and repair (LDAR) program further reduce fugitive emissions.
We have several ongoing initiatives on existing operating units to support decarbonization, such as improving energy efficiency, performing methane Leak Detection and Repair (LDAR) surveys, and reducing greenhouse gas emissions through real-time operational optimization recommendations through Shape AURA, developed by the tech and AI company Shape Digital. Shape Aura is helping to reduce between 5-10% of total emissions of the FPSO just using AI, without any CAPEX investment.
In our most recent projects under construction, we are implementing innovative emission reduction technologies, including a Combined Cycle Energy Generation System, a fuel gas blanket system for cargo tanks to prevent periodic venting during normal operations, LED lighting, and high-efficiency electric motors installed with variable frequency drives. It is important to highlight that FPSO Bacalhau, in Brazil, is the world’s first newbuild FPSO to receive Approval in Principle (AiP) for the “Abate” notation from the classification society DNV. This notation encompasses strict requirements for emissions management per barrel of oil produced and the installation of substantial onboard abatement measures to prevent emergency flaring and optimize power and heat generation efficiency through a combined cycle turbine, reducing greenhouse gas (GHG) emissions.
Additionally, MODEC recently signed a Front End Engineering and Design (FEED) contract with SAMSUNG E&A for a pilot offshore carbon capture project, selecting Carbon Clean’s modular CycloneCC technology. The study foresees installing a carbon capture module on a MODEC FPSO in Brazil as a pilot in the near future, marking the first offshore deployment of the CycloneCC technology. As part of its innovation roadmap, MODEC is also developing a Solid Oxide Fuel Cell (SOFC) pilot project, aimed at evaluating the feasibility of using this high-efficiency, low-emission power generation technology in offshore environments.

Q: Looking ahead, what is MODEC’s long-term vision for Mexico? How do you see the offshore industry evolving here over the next decade, and what role will MODEC play in that future?
A: We are here to stay, and we intend to expand our presence and activities. We are working and hoping to get more work done here and grow together with Mexico. FPSO MIAMTE MV34 is the first, but we aim to go further with Mexico. With over 55 years of global experience in the international oil and gas market, we bring a deep understanding of the industry. We are confident that our expertise, commitment to technology investment, and the dedication of our team will drive meaningful impact and contribute positively to the Mexican market.

MODEC, with over 50 years of experience, delivers and safely operates high-quality, innovative floating solutions for the offshore industry.