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    Ogx management presentation v7 Ogx management presentation v7 Presentation Transcript

    • Management Presentation
    • Disclaimer
      This presentation uses the terms “potential petroleum quantities”, “prospective resources” and “contingent resources” to describe those quantities of petroleum that are potentially recoverable from accumulations yet to be discovered. Because of the uncertainty of commerciality and lack of sufficient exploration drilling, and the lack of identified prospects, leads, or future development and exploration projects, the potential petroleum quantities estimated herein cannot be classified as prospective resources, contingent resources or reserves, and the prospective resources and contingent resources cannot be classified as reserves. Investors are advised that the U.S. Securities and Exchange Commission (SEC) and other international securities regulators do not recognize potential petroleum quantities and prospective and contingent resources. There is no certainty that any portion of the potential petroleum quantities or prospective resources will be discovered and, if discovered, whether they could be developed economically. Therefore, investors are cautioned not to assume that all or any part of OGX’s potential petroleum quantities or prospective resources exist, or that they can be developed economically. Accordingly, information concerning potential petroleum quantities and prospective and contingent resources contained in this presentation are not comparable to information permitted to be made public by U.S. or other international companies subject to SEC reporting and disclosure requirements, especially Regulation S-K under the Securities Act.
      Certain of the information and conclusions set forth herein are based on projections. These projections were prepared for the limited purpose of analyzing the potential risks and benefits of an investment in the securities by illustrating under certain limited assumptions projected capital and operating expenditures, installed production capacity, expected production, and number of wells drilled. In addition, because of the subjective judgments and inherent uncertainties of projections and because the projections are based on a number of assumptions, which are subject to significant uncertainties and contingencies that are beyond the control of OGX, there can be no assurance that the projections or conclusions derived therefrom will be realized. Under no circumstances should the projections set forth herein be regarded as a representation, warranty or prediction that OGX will achieve or is likely to achieve any particular future result. There can be no assurance that OGX’s future results or projections will not vary significantly from those set forth herein. Accordingly, investors may lose all of their investment to the extent the projections or conclusions included herein are not ultimately realized.
      This presentation also contains forward-looking statements, which may be identified by such words as "may", "plans", "expects", "believes" and similar expressions, or by their context. These statements are made on the basis of current knowledge and, by their nature, involve numerous assumptions and uncertainties.
      This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. Recipients of this presentation are not to construe the contents of this summary as legal, tax or investment advice and recipients should consult their own advisors in this regard.
      Various factors could cause OGX's actual future results, performance or events to differ materially from those described in this presentation. In no event shall OGX or the members of its board, directors, assigns or employees be liable to any third party (including investors) for investment decisions or acts or business carried out based on the information and statements that appear in this presentation, or for indirect damage, lost profit or related issues. OGX does not intend to provide to potential shareholders with a revision of the statements or an analysis of the differences between the statements and the actual results. You are urged to carefully review OGX's offering circular, including the risk factors included therein. This presentation does not purport to be all-inclusive or to contain all the information that a prospective investor may desire in evaluating OGX. Each investor must conduct and rely on its own evaluation, including of the associated risks, in making an investment decision.11
      2
    • Agenda
      • OGX Overview
      • OGX Portfolio
      • OGX Operations
      • Path to Production
      • Financial Overview
      • Appendix
      Lastupdate: 09/16/11
      3
    • OGX Overview
    • OGX Overview
      OGX is among the 15 largest pure E&P companies globally with a market cap of approximately US$25 billion, and is the 3rd most traded stock in Latin America
      World class E&P portfolio with 10.8 billion boe of potential resources, mostly in shallow waters and onshore (low cost and off-the-shelf technology)
      Multi-billion barrel discoveries and overall success rate exceeding 90% with high productivity reservoirs amongst the best in Brazil
      Solid cash position allows OGX to conclude the largest and most successful private sector exploratory campaign in Brazil and to support production development (more than 60 wells spud since the beginning of its exploratory campaign in Aug. 2009)
      Highly successful and experienced management team, combining unique intellectual capital and superior execution skills
      Proven execution capability (from concept to oil in an unprecedented timing) with fully established operations comprising more than 5,000 people
      Brazil’s historical under-exploration underpins massive growth opportunities for OGX
      5
    • OGX Main Accomplishments
      OSX-1 and initial
      production
      1 block acquired in Parnaíba (50% stake)
      OGX Main Accomplishments
      Updated OGX portfolio to 10.8 bn(1)boe of potential resources
      5 onshore blocks acquired in Colombia
      Bond: US$ 2.6bn raised
      Nov/ 11
      High productivity horizontal well
      FPSO secured for 20 years
      Sep/11
      OGX included in the Ibovespa Index
      US$1.3 bnraised through an equity Private Placement
      21 blocks acquired during the 9th Bidding Round
      Beginning of thedrilling campaign
      May/11
      Apr/11
      Acquisition of 70% stake in the Parnaíba Assets
      • Total investments of US$ 3.7 bn of Drilling Capex and Bonus Signature + US$ 218 M of Seismic Campaign
      • Total equity raised to date: US$8.0 bn
      Feb/11
      Jun/10
      IPO: US$4.1 bn raised
      Jan/10
      OGX Creation
      Survey and interpretation of the 3D seismic data
      Sep/09
      Aug/09
      Procurement of all equipment and services necessary to initiate the drilling campaign
      Jun/08
      Nov/07
      Jul/07
      Proven execution capability (from concept to first oil in unprecedented timing) with fully established operations comprising more than 5,000 people
      (1) Calculated by OGX based on potential, prospective and contingent volumes contained in the DeGolyer and MacNaughton Reports
      6
    • (1)
      Free Float
      Free Float
      39%
      61%
      Petróleo e Gás Participações S.A.(Market Capitalization (3): ~ US$25 Billion)
      99.99%
      66.67% (4)
      Petróleo e Gás Ltda.
      Maranhão Petróleo e Gás Ltda.
      70%
      100%
      OGX Ownership and Corporate Structure
      • Daily traded average volume (1 month): ~ US$184 million
      • ~33 thousand investors
      • 3rdmost representative stock in Ibovespa index 4.1%
      • Most liquid common share
      99.99%
      OGX Campos Petróleo e Gás S.A.
      30%
      100%
      8 Blocks
      7 Blocks
      20 Blocks
      • 7 - Parnaíba(70%) (2)
      • 1 – Parnaíba (50%) (2)
      • 5 - Campos (100%) (2)
      • 2 - Campos (50%)
      • 5 - Santos (100%) (2)
      • 5 - Espirito Santo (50%)
      • 5 - PAMA (100%) (2)
      • 5 - Colombia (100%) (2)
      (1) EBX represented through Centennial Asset Mining Fund LLC (Nevada, USA) (“CAMF”)
      (2) OGX as operator
      (3) Market data as of June 30, 2011
      (4) MPX S.A. holds 33.33%
      7
    • CEO
      Eike Batista
      Gen. Exec. Officer
      Paulo Mendonça (38)
      Oil & Gas Commercialization
      Joaquim Dib Cohen (32)
      Exploration Officer
      Paulo Mendonça (38)
      General Counsel
      José Roberto Faveret
      CFO
      Marcelo Torres
      Production Officer
      Reinaldo Belotti(34)
      ExplorationCampos-ES
      Paulo Ricardo (28)
      Procurement
      Olavo Foerch (32)
      Production Development
      José Brito (42)
      Exploration Santos and Eq. Margin
      Edmundo Marques (24)
      Reservoir & Reserves
      Roberto Toledo (31)
      Drilling
      Ricardo Juiniti (27)
      E&P Laboratory
      Dolores Carvalho (35)
      Onshore Basin
      Celso Martins (34)
      Logistics
      Billy Pinheiro (30)
      Strategic Alliances
      Luiz Reis (45)
      International
      Ernani Posrche (33)
      Production
      Ricardo Abiramia (24)
      New Areas Executive Manager
      Paulo de Tarso Guimarães (34)
      GeologicalOperations
      Moacir Santos (38)
      Applied Technology
      Marcos Amaral (28)
      HSE
      Leandro Leme (31)
      Highly successful and committed management team,
      Combining unique intellectual capital and superior execution skills
      Management Organization Structure (1)
      (1) Parentheses represent years experience in the E&P industry
      8
    • PBR success index
      Exploratory Team
      • Paulo Mendonça led the Petrobras exploration team from 2002 to 2007
      • Success index in excess of 60% on average offshore Brazil from 2002-2007 whilst at Petrobras
      • Over 10 billion boe and more than 50 new fields discovered
      Proven track record having opened several new oil frontiers, including the pre-salt, and discovering over 50 new oil fields
      Highly Qualified Exploration Team
      9
    • Brazil: Vast Untapped Oil & Gas Potential
      Brazil: Vast Untapped Oil & Gas Potential
      Largest oil and gas discoveries in the world
      New provinces could propel Brazil into top reserves holders
      Still significantly under-explored
      % of sedimentary basins under concession
      + 35 bn boe
      SaudiArabia
      Venezuela
      Iran
      Iraq
      Kuwait
      Brazil post Tupi
      UAE
      Russia
      Libya
      Kazakhstan
      Nigeria
      Canada
      US
      Qatar
      China
      Angola
      Brazil
      Licensed
      4%
      BrazilTurkmenistan Iran
      Kazakhstan China
      Russia
      Australia
      Kuwait
      Israel
      SaudiArabiaIndia
      Indonesia Venezuela Papua
      NewGuineaGhana
      Unlicensed 96%
      Source: ANP
      Oil & gas in the world
      Oil and Gas Discovered Volumes
      2000 – 2010 (Bn boe)
      Oil Resources- December 2009 (Bn bbl)
      Source: EIA-DOE, BP Statistical Review of World Energy 2010, Saudi Aramco, UPPSALA University, Petrobras, ANP and OGX analysis
      Source: IHS
      Source: BP Statistical Review of World Energy 2010 & analyst estimates
      Brazil’s historical under-exploration underpins massive growth opportunities for OGX
      10
    • OGX Portfolio
      • 35 blocks: 30 blocks in 5 Brazilian sedimentary basins and 5 onshore blocks in 3 Colombian sedimentary basins
      • Unique portfolio with 10.8 billion potential recoverable barrels of oil equivalent (boer)
      • OGX’s business plan is based on 4.1 billion barrels already discovered in the shallow waters of the Campos Basin
      Portfolio
      Shallowwater
      ~120m
      Shallowwater
      ~150m
      Shallowwater
      ~60m
      Deepwater
      ~1,000m
      12
      OGX Portfolio
    • Campos Basin
      • 5.7 bn bbl of net 3C, net delineation and net mean risked prospective resources, evaluated by D&M (pre-salt not included)
      • 5 blocks operated by OGX (100% owned) and 2 operated by Maersk Oil (50% owned)
      • Total area of 1,177 km2
      • Average water depth of ~120m
      • 46 wells drilled
      • 100% success rate
      OGX’s discovered accumulations confirm a new hydrocarbon province in the southern Campos Basin
      Campos Basin: Low Risk, Shallow Water and Large
      13
    • Santos Basin: High Potential
      Santos Basin
      • 1.8 bnboe of net risked prospective resources (POS of 27%), evaluated by D&M
      • 5 blocks operated by OGX (100% owned)
      • Total area of 820 km²
      • Average water depth of ~150 m
      • 9 wells drilled
      • ~ 65% success rate
      Santos basin is oneofthemostpromisingexploratoryareas in brazil, withsignificantpotential for gasand light oil
      14
    • Parnaíba basin
      Newfrontierbasinwithhighpotential for gasproduction
      Parnaíba Basin: Major Gas Province
      • 1.0 bn boe of net risked mean prospective resources POS (17%) and net 3C, evaluated by D&M
      • 8 blocks operated by OGX Maranhão
      • Total area of 24,500 km²
      • Monetization of gas through thermoelectric plants to be developed by MPX/Petra (3,722 MW already licensed)
      • >75% success rate (9 wells drilled)
      • Commerciality declared for 2 accumulations
      15
    • Pará Maranhão Basin: PromisingNewFrontier
      Pará-Maranhão Basin
      • 447 mnboe of net mean risked prospective resources (POS of 21%), evaluated by D&M
      • 5 blocks operated by OGX (100% owned)
      • Total area of 960 km²
      • Average water depth of ~60m
      • 1st well to be drilled in 2H11
      Newfrontierwithgeologicalmodel similar to westAfrica, wheresignificantdiscoveriesweremaderecently
      16
    • Espírito Santo Basin: NewFrontier in DeepWater
      Espírito Santo Basin
      • 817 mnboe of net mean risked prospective resources (POS of 33%), evaluated by D&M
      • 5 blocks operated by Perenco (50% owned)
      • Total area of 3,620 km²
      • Average water depth of ~1,000 m
      • 1st well to be drilled in 2H11
      Thenewfrontierof Espírito Santo hasproven to be a veryactivepetrolific system
      17
    • Colombia: Cesar-Ranchería, Middle and Lower Magdalena Valleys: Great Upside Potential
      Colombian Basins
      MARACAIBO
      BASIN
      • 1.1 bnboe of net prospective resources and net potential petroleum quantities, evaluated by D&M
      • 5 blocks operated by OGX (100% owned), 3 of which are located close to Maracaibo Basin (~80 bnboe discovered and ~50 bnboe already produced)
      • Beginning of the Seismic Campaign in 2H11
      Balancedportfolioofexploratoryassets, combiningproductionregionswithlessexploredareasnext to theMaracaibobasin, oneofthemostprolificprovinces in the world
      18
    • Portfolio Breakdown
      19%
      Onshore
      8%
      Deep Water
      Oildiscoveries of 4.1 bn bbl are already under production development in the shallow waters of Campos Basin
      OGX Portfolio Potential: Breakdown
      73%
      Shallow
      Water
      21%
      Gas
      79%
      Oil
      Note: “POS “ defined as geological probability of success
      (1) The OGX portfolio potential was calculated by OGX based on volume estimates contained in the DeGolyer and MacNaughton Reports
      (2) We consider the 3C contingent resources in the arithmetic summation of our potential portfolio based on the assumption that these resources will be converted to 2C and 1C resources after the appraisal campaign and that they will be converted into reserves after the removal of contingencies
      (3) We consider the high estimate and not Pg-adjusted delineation area prospective resources as we believe the delineation area is part of the 3C area
      (4) Prospective resources mean estimates Pg-adjusted. Colombia considered two Colombian basins, the Lower and Middle Magdalena Valleys Basins(5) Includes petroleum potential quantities in one Colombian basin, the Cesar-Ranchería Basin(6) OGX net interests in the table are not the same as OGX net interests contained in the DeGolyer and MacNaughton September 2009 report due to the fact that OGX now holds 100% of the interests in the concessions included in that report
      (7) Gas volumes were converted by OGX to barrels of oil, using a conversion rate of 5,615 ft³ of natural gas to one boe
      19
    • OGX Operations
    • Onshore Drilling
      Offshore Drilling
      Ocean Lexington (Diamond):
      • Daily Rate: US$ 335k
      • Max. well depth: 20,000 ft
      • Contract Expires: Feb.2013 (+one optional year)
      Ocean Ambassador (Diamond):
      • Daily Rate: US$ 260k
      • Max. well depth: 20,000 ft
      • Contract Expires: Sep.2012 (+ one optional year)
      Ocean Quest (Diamond):
      • Daily Rate: US$ 270k
      • Max. well depth: 25,000 ft
      • Contract expires: Dec.2012 (+ one optional year)
      Ocean Star (Diamond):
      • Daily Rate: US$ 310k
      • Max. well depth: 25,000 ft
      • Contract Expires: Feb.2013 (+ one optional year)
      QG-1 (QueirozGalvão):
      • Daily Rate: US$ 28k
      • Max. well depth: 14,750 ft
      • Contract Expires: Jan.2012
      BCH-05E (BCH):
      • Daily Rate: US$ 31.5k
      • Max. well depth: 11,500 ft
      • Contract Expires: Feb.2012
      • 3rd rig contracted
      Sea Explorer (Ensco)
      • Daily Rate: US$ 220k
      • Max. well depth : 20,000 ft
      • Contract Expires: Nov.2013
      Pride Venezuela (Ensco):
      • Daily Rate: US$235k
      • Max. well depth: 20,000 ft
      • Contract Expires: Nov.2013
      Ocean Scepter (Diamond):
      • Daily Rate: US$ 135k
      • Max. well depth: 30,000 ft
      • Contract Expires: Jan.2012 (+one optional year)
      Drilling campaign expanded – 8 rigs already operating simultaneously
      Exploration Drilling Campaign
      21
    • LOGISTICS OPERATIONAL SUPPORT
      FIRST CLASS SUPPLIERS
      EFFICIENCY,
      AGILITYAND OPERATIONAL SECURITY
      PLATFORM SUPPLY VESSEL (PSV)
      • QUANTITY:5
      • CONTRACTOR: EDISON CHOUEST/ TIDE WATER
      ANCHOR HANDLING TUG SUPPLY (AHTS)
      • QUANTITY: 6
      • CONTRACTOR: EDISON CHOUEST/NORSKAN/MAERSK
      FAST SUPPLY VESSEL (FSV)
      • QUANTITY: 1
      • CONTRACTOR: EDISON CHOUEST
      HIGH QUALIFIED TEAM
      MID SIZE HELICOPTER
      • QUANTITY: 4
      • CONTRACTOR: AERÓLEO
      • OGX Team: ~270 employees
      • Over 5,000 peoplededicated
      • 3D Room / IOSC
      Operational Capabilities and Structure
      22
    • Path to Production
    • Campos Exploratory Drilling Strategy and Results
      Drilling Strategy
      Drilling Results
      • 1st phase strategy (from Mar/08 to Dec/10)
      • Seismic campaign to better image the areas and reduce risks
      • Discover the maximum amount of oil
      • 19 wells drilled 1
      • 2nd phase strategy (from Dec/10 to Mar/13)
      • 22 wells drilled 2
      • Focus on the appraisal drilling campaign to delineate existing discoveries
      • Continue exploratory program with drilling of wildcat wells
      • Begin production in October 2011
      • Drilling of 41 wells with hydrocarbons
      • OGX analysis supports recoverable resources of 4.1 billion barrels
      • Oil columns of up to ~250 meters
      • Net pay up to ~150 meters
      • Well results confirm OGX’s geological models for the Campos Basin
      • DSTs (drill stem tests) support conservative production estimate of 10 – 20 kbpd
      • One of the best DSTs ever performed in Brazil, with a production potential of 40,000 barrels per day
      • OGX production estimates are supported by results from other fields in Campos using current technology
      Notes:1 Number of wells concluded in 2010 and included in D&M’s reports2 Number of wells concluded in 2011
      24
    • Campos Basin: Focusing on Wildcat & Appraisal Wells
      Appraisal wells
      Wildcat Wells
      Note:Drilling area as per D&M’s Dec/10 reports and net pay
      26 wildcat wells and 20 appraisal wells drilled with hydrocarbons and results which support expectations
      25
    • Campos Basin: Development Business Plan
      Initial Projects
      Campos Basin
      Development Plan
      Project 2Waikiki Complex 1st oil date: 4Q13
      • 4.1 bnbbl
      • Shallow waters
      • Average production per well 10 – 20 kbpd
      • 12 FPSOs and 11 WHPs
      • 5 FPSOs and 2 WHPs already secured
      • Average field life
      • Capex US$ 2/bbl
      • Opex <US$ 16/bbl
      • 22 development wells
      • 14 production
      • 8 injection
      • 1 FPSO and 1 WHP
      • OSX-3 and WHP-2
      • Oil of 23° - 28° API
      • Water depth: 120m
      • Average production per well 15 – 20 kbpd
      Project 1 Waimea Complex 1st oil date: Oct. 2011
      • 42 development wells
      • 28 production
      • 14 injection
      • 3 FPSOs and 2 WHPs
      • OSX-1, OSX-2 and WHP-1
      • Oil of 20° API
      • Water depth: 140m
      • Average production per well 10 – 20 kbpd
      Illustrative
      26
    • Recent Horizontal Wells Tested
      Campos Basin: Positive Horizontal Wells TestResults
      Horizontal wells tested
      Drill-stem tests performed in horizontal wells
      Waimea OGX – 26HP
      • Production capacity of up to 20,000 bbl/day
      • Oil Quality of 20o API
      • Tested in Jan/2011
      Waikiki OGX-44HP
      • Production capacity of up to 20,000 bbl/day
      • Oil Quality of 23o API
      • Tested in Jun/2011
      Pipeline OGX-39HP
      • Production capacity of around 10,000 bbl/day
      • Oil Quality of 19o API
      • Tested in Jul/2011
      3 drill-stem tests already performed in horizontal wells prepared for production
      and more to come in the second half
      27
    • Campos Basin: Production Will Begin in the Waimea Accumulation
      Beginning of Production
      1st Oil Production Concept
      Horizontal production well already drilled, completed and successfully tested
      Wet christmas tree installed
      Wetchristmastree
      OSX-1
      Electrical submersible pump installed
      Buoy
      RisersandUmbilicals
      Flexiblelines
      Hydraulic Power Unit (HPU) installed
      Mooringsand Piles
      Umbilicals delivered
      Maincharacteristics:
      • Productionpotentialof 40 kbpd w/ capacitylimited to 20 kbpd
      • Oilqualityof 20° API
      • Waterdepthof 140 meters
      Flexible lines delivered
      Anchor system (moorings and piles) delivered
      Installation support vessel delivered
      EWT approved by ANP (National Petroleum Agency)
      Preliminary and Installation License
      Electricalsubmersiblepump
      Horizontal Well
      OGX first oil expected for November through Extended Well Test (EWT)
      Illustrative frames
      28
    • Campos Basin: Equipment Secured
      FPSO OSX-1
      Wet Christmas Tree
      Flexible Lines
      Campos Basin: Equipment Secured
      Critical equipment and services status
      Main equipment in place
      • Equipment
      • Wet Christmas Tree (WCT): Already installed
      • Umbilical Terminal Assembly (UTA): Contracted
      • Hydraulic Power Unit (HPU): Delivered in April, 2011
      • Flexible Lines: Contracted with Wellstream
      • Electrical Submersible Pump (ESP): Contracted with Baker Hughes
      • 80 kbpd of processing capacity & 950,000 barrels of storage capacity
      • Expected arrival: Oct/11
      • Already installed
      • Produced by GE Oil & Gas
      • Services
      • Installation Vessel – Anchor System, Flexible Lines and Umbilicals: Contracted with WS and Aker
      • Mud line and Subsurface analysis for FPSO mooring and WHP piles: Contracted with FUGRO – already completed
      • Waimea Area Survey: Contracted with FUGRO
      • Already manufactured
      • Produced by Wellstream
      Aker Wayfarer Vessel
      • Contracted with Aker
      • Loaded with anchorage equipment for OSX-1
      29
    • Campos Basin: Final Steps Towards Production
      Flexible lines / umbilicals connection and risers installation
      Moorings and Piles installation
      Arrival of the FPSO OSX-1
      Beginningofproduction
      1
      3
      2
      Arrival of the Buoy and installation
      Buoy hook-up and connection to the FPSO
      5
      4
      6
      Illustrative frames
      30
    • Campos Basin: WaimeaComplexProductionConcept
      Pioneer Production Concept
      Pioneer Project Development
      • 5 development wells connected to the FPSO OSX-1
      • 3 horizontal production wells
      • 1st production well, OGX-26HP, ready for production
      • 2nd production well, OGX-55HP, currently being drilled
      • 3rd production well, OGX-60HP, currently being drilled
      • Average production per well 10–20 kbpd
      • 2 subsea injection wells
      • 1 FPSO: OSX-1
      • OSX-1 expected arrival for October/2011
      • OGX-55HP and OGX-60HP wells to be hooked-up to OSX-1 after the declaration of commerciality next year
      • With 3 production wells on stream next year, OGX should reach production levels of ~50 kbpd
      ProductionWell 1
      (OGX-26HP)
      ProductionWell 3
      (OGX-60HP)
      InjectionWell 2
      InjectionWell 1
      ProductionWell 2
      (OGX-55HP)
      Development Wells
      Illustrative frame
      31
    • Operational Expenditures
      (Leased Equipment)
      Opex
      <US$ 16/bbl
      FPSOOil capacity: 100 K bpd
      Liquid capacity: 160 K bpd
      Oil will be offloaded
      WHPCapacity: 30 wellsDrilling package on topside
      WHP Subsea Flow Lines
      Power line
      Gas Lift line
      Service line
      Water Injection line
      Production line
      Test line
      Drilling + Completion
      Development wells with dry completion
      Gaswillbereinjected, used for gasliftorpowergeneration
      WaterInjection
      Capital Expenditures
      Campos Basin: Replicable Development Concept
      Capex
      US$ 2/bbl
      Note: Please see details in the Appendix slide: “Campos Basin: Typical Production Project”
      32
    • WHPs
      FPSOs
      Unit
      2011
      … 2013
      2014
      2015
      2016
      Unit
      2013
      2014
      2014
      Waimea
      OSX-1
      WHP-1
      Waimea
      Oct
      1st Q
      Waimea
      OSX-2
      2nd Q
      WHP-2
      Waikiki
      2nd Q
      Waikiki
      OSX-3
      3rd Q
      WHP-3
      3rd Q
      OSX-4
      2nd Q
      WHP-4
      4th Q
      OSX-5
      4th Q
      WHP-5
      4th Q
      OSX-6
      4th Q
      WHP-6
      4th Q
      OSX-7
      4th Q
      WHP-7
      1st Q
      OSX-8
      1st Q
      WHP-8
      2nd Q
      OSX-9
      3rd Q
      WHP-9
      3rd Q
      OSX-10
      4th Q
      WHP-10
      4th Q
      OSX-11
      1st Q
      WHP-11
      OSX-12
      4th Q
      1st Q
      • OSX-1 to be delivered in October 2011
      • OSX-2 and OSX-3 to be built in world-class Singaporean shipyards by SBM and Modec
      • OSX-4 and OSX-5 hulls already acquired by OSX
      • WHP-1 and WHP-2 with detailed engineering ongoing (EPC awarded to Techint by OSX)
      FPSOs and WHPs Expected Deliveries
      Production equipment allocated to begin operations until 2013
      33
    • WHPs
      FPSOs
      OSX-1:
      • Production capacity of 80 kbpd and storage of 950 kbbl
      • Average Day rate of US$ 263 k
      • Arrival expected to Oct/11
      OSX-2:
      • Production capacity of 100 kbpd and storage of 1.3 Mbbl
      • Expected Average day rate of US$ 290 k
      • Contracted by OSX with SBM
      OSX-3:
      • Production capacity of 100 kbpd and storage of 1.3 Mbbl
      • Expected Average day rate of US$ 290 k
      • Contracted by OSX with MODEC
      WHP-1:
      • Capacity to drill up to 30 wells
      • Four production wells on-stream by the end of 2013
      • Detailed engineering ongoing (EPC awarded to Techint by OSX)
      • Two sister VLCC´s (Very Large Crude Oil Carriers) purchased on November, 2010 by OSX to be converted into FPSOs
      WHP-2:
      • Capacity to drill up to 30 wells
      • Three production wells on-stream by the end of 2013
      • Detailed engineering ongoing (EPC awarded to Techint by OSX)
      OSX-5:
      • Production capacity of 100 kbpd and storage of 1.3 Mbbl
      • Order placed for Leasing contract and EPCI under procurement
      OSX-4:
      • Production capacity of 100 kbpd and storage of 1.3 Mbbl
      • Order placed for Leasing contract and EPCI under procurement
      Secured Production Equipment
      34
    • OGX Strategy to Expedite Production
      Available Drilling Resources
      Pre-Drilling Strategy
      • Expedite drilling process and accelerate production ramp-up
      • OGX plans to drill on average five horizontal wells prior to the arrival of the WHPs from semi-submersible rigs
      • Upon arrival of each WHP, pre-drilled wells should ramp-up plateau production in approximately three quarters
      Ocean Lexington (Diamond):
      • Daily Rate: US$ 335k
      • Max. well depth: 20,000 ft
      • Contract Expires: Feb.2013
      • (+ one optional year)
      Ocean Ambassador (Diamond):
      • Daily Rate: US$ 260k
      • Max. well depth: 20,000 ft
      • Contract Expires: Sep.2012 (+ one optional year)
       
      • Given the significant number of discoveries and their similarities, OGX has the benefit of accelerating the procurement process through the use of Flex FPSOs
      • Flex FPSOs have capacity of processing oil for a broader range of APIs and GOR (gas/oil ratio)
      • Standard design (same characteristics for all FPSOs)
      • Capitalizes on economies of scale
      Flex FPSOs
      Ocean Quest (Diamond):
      • Daily Rate: US$ 270k
      • Max. well depth: 25,000 ft
      • Contract expires: Dec.2012 (+ one optional year)
      Ocean Star (Diamond):
      • Daily Rate: US$ 310k
      • Max. well depth: 25,000 ft
      • Contract Expires: Feb.2013 (+ one optional year)
      Pride Venezuela (Pride):
      • Daily Rate: US$ 235k
      • Max. well depth: 20,000 ft
      • Contract Expires: Nov.2013
      Sea Explorer (Pride):
      • Daily Rate: US$ 220k
      • Max. well depth : 20,000 ft
      • Contract Expires: Nov.2013
      35
    • Campos Basin: Oil Production Ramp-Up
      150
      CAGR : 174%
      Oil Production Target (kbpd) ¹
      50
      20
      2011
      2012
      2013
      Note:
      1 To be reached through the end of the period
      36
    • Parnaíba Basin: Business Plan
      Project 1 1stgas: 2H12
      23 production wells
      Parnaíba Complex
      • Declaration of commerciality of two fields (Gavião Real & GaviãoAzul) already submitted to ANP
      • Initial production expected in 2H12
      • Low capital and operating costs
      • Production of 5.7 M m³per day in 2013 (2.7 M m³per day net to OGX S.A. or ~15 kboepd)
      • Second seismic crew contracted to work on the southern blocks
      • Recently approved leasing agreement of 2 additional rigs
      • Gas to be sold to MPX Power Plants
      • MPX has obtained an additional 1,859 MW of installation license, totaling 3,722 MW
      • MPX Parnaíba thermoelectric complex will reach a total capacity of 1,500 MW
      • Energy generated by MPX’s power plants will be sold to the energy markets
      Gavião Azul
      Gavião Real
      Legend:
      Seismic Lines
      37
    • Parnaíba Basin: Project Development
      Parnaíba Development Schematic
      Gas Thermal Power Plant Development
      OGX Maranhão (70%) + Petra (30%) investments
      MPX + Petra investments
      Capex field life
      • Total drilling cost: US$ 340 M (includes re-completion cost)
      • Total facilities1 cost: US$ 110M
      Production Facility
      for Dry Gas
      Gas Thermal Power Plant
      Short Gas Pipeline(<2 km)
      Opex field life 2
      • Less than US$ 0.30/1,000 cubic feet
      Lines
      Transmission Lines
      Manifolds
      Wells
      Gathering System
      Notes:
      1 Facilities cost includes: gathering system (lines and manifolds), a production facility for dry gas and a very short pipeline
      2 Includes operating and maintenance of production facilities, lines, gas pipelines and wells
      38
    • Production Targets
      OGX Production Targets
      OGX Offshore Equipment Demand
      19 units
      12 units for
      Campos Basin discoveries
      In kboepd
      FPSO
      24 units
      11 units for
      Campos Basin discoveries
      WHP
      5 units
      expected to be used in the
      Espírito Santo Basin
      (the only deep water blocks in OGX’s portfolio)
      TLWP
      • Portfolio potential of 10.8 bn of recoverable boe: >10 years of production growth
      • Campos and Parnaíbadiscoveries (4.2 bnboe) can support 730,000 boepd of production level
      • Additional potential resources (6.6 bnboe) would allow OGX to reach and sustain a plateau of 1.4 million boepd from 2019 and beyond
      • Expected demand of 48 offshore units
      • Total of 23 units estimated for OGX’s Campos Basin discoveries (12 FPSOs and 11 WHPs)
      • Strategy to expedite development with production equipment contracted 2-3 years in advance
      39
    • Financial Overview
    • OGX Financial Sources and Uses (2Q11 – 4Q13)
      Financial Sources and Uses
      Notes:
      ¹ Includes net financial results
      ² Represents 40% of Exploration capex (contemplating all OGX basins) and 60% of Development capex (contemplating Campos and Parnaíba discoveries only)
      41
    • Appendix
    • OngoingActivities
      Parnaíba Basin
      Campos Basin
      Santos Basin
      OGX Blocks Oil & Gas Fields
      1OGX Maranhão has 70% W.I
      43
    • Concluded Wells (1 of 3)
      Concluded Wells (1 of 4)
      44
    • Concluded Wells (2 of 4)
      45
    • Concluded Wells (3 of 4)
      ¹ OGX Maranhão has 70% W.I. ² OGX has 50% W.I. and Maersk is the operator
      46
    • Concluded Wells (4 of 4)
      ¹ OGX Maranhão has 70% W.I. ² OGX has 50% W.I. and Maersk is the operator
      47
    • Campos Basin: Typical Production Project
      Typical Replicable Project Assumptions Campos Basin
      • Distance from shore: 80 km
      • Water depth: 100 to 150 meters
      • Recoverable volume: 500 million bbl (low Gas:OilRatio (GOR)): all gas produced will be used for power generation or gas reinjection, if applicable
      • Equipment oil producing capacity:
      • 1 FPSO: 100 Kbblpd
      • 1 WHP: 30 wells
      • Drilled wells:16 horizontal production wells and 9 injection wells
      • 5 horizontal production wells pre-drilled from semi-submersible rig
      • 11 production and 9 injection wells drilled from WHP
      • Capex:estimated unit cost of approximately US$ 2 / barrel
      • Pre-drilled wells = US$ 50M (75 days per well)
      • WHP drilled wells = US$ 20M (75 days per well)
      • Well completion = US$ 15M (30 days per well)
      • Package of sub-sea flow lines = US$ 65M
      • Opex:estimated unit cost lower than US$ 16 / barrel
      • Leased equipment day rates with high local content (FPSOs US$ 350k / day & WHPs US$ 160k /day)
      • Operating and maintenance expenditures of US$ 85k / day
      • Variable operating costs of US$ 3.5 / barrel
      • Abandonment costs at end of field life of US$ 100M
      • Production profile:
      • Achieve production plateau in 3 quarters
      • Plateau maintained for an additional 4 years
      • 20 to 22 years of production decline from the plateau thereafter
      48
    • OGX IR Contacts: ri@ogx.com.br
      + 55 21 2555 6237