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    Institutional presentation Institutional presentation Presentation Transcript

    • OSX – Institutional Presentation May 2011 1
    • OSX OwnershipOrganizational Structure 78.9% Free Float 21.1% Integrated offshore E&P Holding equipment and services provider 10% 90% 100% 100% OSX Shipbuilding Unit OSX Leasing OSX Services 2
    • OSX Highlights • Priority Rights between OSX and OGXStrong Demandfrom OGX • Order book of 48 offshore E&P units, equivalent to a US$ 30bn investment • Upside potential with expansion of OGX’s exploratory campaign • Expected oil and gas resources to increase to 100 Bboe, with announced investments ofAttractive Market US$ 140bn plusConditions in Brazil • Underserved domestic equipment & services marketLocal Content • Approximately 70% of E&P industry capex supplied locallyRequirement • Key for Brazil’s long term social and economic development (285k jobs in the 5 yrs)Strategic • Partnership with the largest shipbuilder in the worldPartnership withHyundai & Unique • State-of-the-art technology and transfer of know-howLocation • Large, scalable shipyard at Açu • Firm orders of $4.8 bn • FPSO OSX 1 to be delivered in 3Q 2011Strong CurrentOrder Book • FPSO OSX 2 e OSX 3 to be delivered in 3Q 2013 • FPSO’s OSX 4 and OSX 5 to be delivered in 3Q 2014 and 1Q 2015 • WHP’s 1 and 2 construction contract ongoing and to be delivered in 3Q 2013Incentivized and • More than 30 years experience, on average, in the E&P sectorExperiencedManagement Team • US$ 30bn in projects and more than 50 thousand people under management 3
    • OGX: Anchor Client 35 wells with O&G discovered Exploratory Success in the Drilling Campaign LINGUADO Campos Basin T Aracaju Prospect Pipeline Prospect BM-C-39 POLVO Netpay of 40 meters C OGX Highlights Netpay of 165 meters BM-C-40 Discovery between 1,000 – 2,000 M boe R Belém Prospect • Largest Brazilian private E&P player in terms of offshore BM-C-37 PEREGRINO Netpay of 43 meters D Waimea Prospect C G MAROMBA Vesuvio Prospect exploratory acreage Netpay of 130 meters BM-C-38 D I BM-C-41 PAPA-TERRA J N Netpay of 57 meters B Discovery between 500 – 900 M boe H B F • 6.7 billion boe of risked prospective resources and 212 K BM-C-42 E BM-C-43 Discovery between 500 - 1,500 M boe Santos Basin Etna Prospect million boe of contingent resources, assuming a Netpay of 91 meters BM-S-56 S Ingá Prospect G Netpay of 12 meters M Discovery between BM-S-58 probability of success of 35% BM-S-57 500 – 1.000 M boe L BM-S-59 Vesúvio Direcional • 22 offshore blocks and 7 onshore blocks in 5 different H Huna Prospect Netpay of 52 meters 1SPS 0014 SP1SPS 0014A SP MEXILHÃO J Prospect Netpay of 60 meters 1-MRK-1-SPS sedimentary basins A LAGOSTA Hawaii Prospect OGX blocks MERLUZA L 1SPS 0019 SP Netpay of 64 meter Oil Field OGX Offshore Blocks (Sept/09) 1BSS 0067 BS Blocos OGX Campos de Produção Unrisked Probability of Risked Risked 0 2 4 8 12 16 Km Basin Blocks Resources Resources Resources Basin D&M Report 2011 Geological Total 1 Total OGX Success Campos 7 9,350 44.10% 4,124 3,693 Campos 5,700* Santos 5 6,659 27.00% 1,796 1,688 Santos 1,688 Espírito Espírito 5 5,017 32.60% 1,634 817 817 Santo Santo Pará Pará 5 2,104 21.30% 447 447 447 Maranhão Maranhão Total 22 23,130 34.59% 8,001 6,645 Total 8,652(1) Gross Prospective Resources * 3C + Delineation + ProspectiveSource: D&M Report and OGX presentations 4
    • OGX: Significant Demand Expected Base case order book of 48 offshore E&P units equivalent to US$ 30bn Expected Demand for Offshore Equipment (2011-2019) inOGX Production Targets - kboepd Number of units 1,380 FPSO 19 CAGR: 70% TLWP 5 730 WHP 24 Total 48* Source: OGX * Considering 2009 D&M Report 20 Delivery Timeline 13 2011E 2015E 2019E 12• Initial production expected to begin 2011 6 6• 1st FPSO already contracted for a period of 20 years, at an 6 6 5 2 1 average day rate of US$263,000 1 2 4 3 5 1• Expected CAGR of 70% between 2011 and 2019 1 5 4 5 2 1 3 1 2 1 1 1 1 1 2011E 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E * OSX2: to be delivered in mid 2013 (IPO:Dec12)Source: OGX * OSX5: to be delivered in 1Q 2015 (IPO:Dec14) 5
    • Current Order Book - OGX ESTIMATED CAPEX EQUIPMENT CAPACITY FIRST OIL US$ MM FPSO OSX1 80K bopd 610 3Q 2011 FPSO OSX2 100K bopd 775 3Q 2013 FPSO OSX3 100K bopd 800-850 3Q 2013 FPSO OSX4 100K bopd 850-900 3Q 2014 FPSO OSX5 100K bopd 850-900 1Q 2015 WHP1 *30 wells 400-450 3Q 2013 WHP2 *30 wells 400-450 3Q 2013 Total 4,685 - 4,935 *18 wells for production,10 wells for water injection and 2 wells for gas injection 6
    • Pre-Salt Resources Pre-salt discoveries strongly contribute to increase Brazilian resources of up to 100BboePre-salt Resources Pre-salt Resources Area Exploratory Blocks Total Area 112,000 km2 OGX Blocks Oil and Gas Fields Estimated Additional ~ 70 billion boe (only in pre-salt) Pre-salt Reservoir Resources (Petrobras/CNPE/ANP) Production FPSO units, deepwater environment Development Required US$ 111bn 2009-2020E Capex US$ 33bn 2010-2014ESource: Petrobras, ANP EspíritoPetrobras Local Production Forecast Santo Basin(thousand bpd) Açu Super-Port 3,740 3,920 3,340 2,680 582 1,336 1,815 2,050 219 Campos Basin 2,461 2,758 2,404 2,050 2,105 2009 2013E 2015E 2017E 2020E Ex-Pre Salt Pre Salt Petrobras’ capex: US$111 billion Santos Basin 7Source: Petrobras Source: Petrobras (Company Presentation)
    • Strong Demand for Offshore E&P Equipment in Brazil • 182 units to be delivered within the next 10 years • OGX’s projected demand: 48 units (19 FPSOs, 24 WHPs, 5 TLWPs) Consolidated Potential Demand (E&P number of equipment) OGX (FPSOs Only) Petrobras (FPSOs + 28 Rigs) 32 27 18 22 16 13 11 8Existing Capacity 3 3 2011E 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020ENote: Including already ordered equipmentSource: VeraxCapacity Estimates: Source OSX 8
    • Local Content: Rationale and Evolution The Local Content requirement represents a social and economic development strategy and has significantly increased over ANP’s bidding roundsLocal Content Requirement Local Content Evolution• Definition: minimum percentage of equipment and 86% 89% 84% services contracted by the operator that must be supplied 81% 77% by local companies 86% 79% 79%• Average 70% in the production development phase 48% 54% 74% 69%• Component of the bid for acquisition of E&P Blocks 27% 40%• 42% 39% Certification of each item by inspection companies 28% (guidelines set forth by Federal Government – MME) 25%• Subject to severe penalties 1st 2nd 3rd 4th 5th 6th 7th 8th (1) 9th 10th Exploration Phase Development Phase Source: ANP Note (1) 8th ANP bidding round auction is still under discussionLocal Content Rationale Notable Companies Committed to Local Content• Boost local oil & gas equipment and services industry• Incentivize local technology development• Substantially increase employment and income 9
    • Brazilian Shipyards Local shipyards are not prepared to serve expected offshore E&P equipment demandMain Shipbuilders in Brazil Current Brazilian Shipyard Condition Mac Laren EAS ERG Brasfels Mauá MacLarenCommitted SlotsSite Area (km2) 1.6 0.5 0.5 0.4 0.1 MauáTechnology PartnerSteel Processing Capacity 160 60 50 36 6(Kton / year)Focus on OffshoreEquipment BrasfelsLogisticsLabor ForceSource: Verax “A construction slot in OSX’s shipyard is worth more than gold” 10
    • Strategic Partner: Hyundai Heavy Industries OSX Shipyard Unit under development in partnership with the largest shipbuilder in the world Rationale and Overview Why Hyundai? Efficiency Comparison• 10% equity investment in OSX Shipyard • Proven track record: founded in 1972 • Significant upside potential for OSX • Largest shipbuilder in the world: 10%• State-of-the-art technology – HHI Offshore division processes market share (2010) 550,000 tons of steel/year in• Transfer of know-how and training • Delivered more than 1,600 vessels to 2,500,000 m² more than 250 ship owners in 47• Accelerate learning curve: 38 years of – OSX should process in its initial countries to date experience into 2 years • One of the leaders in offshore equipment stage 180,000 tons of steel/year and integrate 220,000 tons/year in• Technology and services contract for fabrication in the world, handling over 100 2,000,000 m² shipyard design and transfer of know-how turnkey EPIC projects for more than 30 oil for at least 10 years and gas majors • Efficiency gains could drive potential • Delivered FPSO’s and fixed platforms to processing capacity expansion clients such as ExxonMobil, Petrobras, • OSX’s goal is to reach Asian productivity Shell, Chevron and BP levels in two years of operation 11
    • Açu Site Approval of macro drainage project: March 31st 2010 “The largest shipyard to be built in the Americas” 12
    • Açu Industrial DistrictA new cluster for heavy industry 13 13
    • Açu Site• US$ 1.7 bn investment• Steel processing capacity of 180,000 ton/year and assembly capacity of 220,000 ton/year• Up to 3,525 m water front (2,400 m in first phase)• Conceptual design approved by Hyundai Heavy Industries Platforms Platforms assembling construction areas area Modules Drydock and construction effluent station area treatment Green curtain Effluent treatment station Water treatment station FPSO Industrial Unit Administrati ve buildings Quay Administrative Electric Substation 345 kV – 13.8 buildings with kV Leed - US Green Building 14
    • Açu Site: Competitive Advantages• Welding savings with 18m steel plate: 56% less welding• Energy savings: 30% reduction• Weather conditions: 25% more sunny days (5% efficiency increase)• Soil advantages: less foundation required• Integration slots: up to 3,525m of quay• Proximity to Campos Basin: approximately 150 km 15
    • Açu Site: Preliminary Budget Preliminary Budget - USD (MM) Total LLX OSX Common Infrastructure 448 219 229 Engineering 31 15 16 Civil Works 416 204 212 Offshore Dredging (854k m3) 111 55 56 Onshore Dredging (13,000k m3) 41 20 21 Break Water (2,300k m3) 264 129 135 Pre eng. costs + environmental 74 - 74 Civil works 447 - 447 Onshore Dredging (10,500k m3) 90 - 90 Quay (2,270 m) 262 - 262 Back area embankment (6,000k m3) 21 - 21 Site camp facility and management 74 - 74 Shipyard structure 544 - 544 Buildings 265 - 265 Dry Dock 133 - 133 Roads and Paving 146 - 146 Equipment and others 420 - 420 Total 1,933 219 1,714 16
    • Product Portfolio Description Main Systems for Standardization Target • Floating Production Storage and Offloading FPSO • Hull: conversion of oil tanker or new- build • Pull-in and Mooring Systems • Tension-Leg Wellhead Platform TLWP • Cranes • Suited for deepwater environments • Power Generation • Wellhead Platform or fixed production WHP platforms in general • Automation Systems • Suited for shallow-water environments • Bulk Materials • Drilling units for exploration Drillships • Processing Systems • Heavily demanded in ultra-deepwater • Safety Systems • Navigation transportation unit Tankers • Demand for long course navigation units, cabotage, relievers and production platforms 17
    • Next MilestonesInstallation LicenseShipyard Ground BreakingBNDES / FMM FinancingFPSO OSX 2 FinancingWHP 1 and WHP 2 EPCI Contract SignatureFPSO OSX 1 arrival in Brazil and First OilConstruction Contract: FPSOs OSX 3, OSX 4 and OSX 5Potential orders from other clients 18