Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Osx institutional eng_november_final

260 views

Published on

Published in: Business, Economy & Finance
  • Be the first to comment

  • Be the first to like this

Osx institutional eng_november_final

  1. 1. Institutional Presentation 2011
  2. 2. Organizational Structure Free Float 78.8% 21.2% Integrated offshore E&P equipment and services provider Holding 10% 90% 100% 100% OSX Shipbuilding OSX Leasing OSX Services Unit 2
  3. 3. OSX Highlights  Priority Rights between OSX and OGXStrong Demand  Order book of 48 offshore E&P units, equivalent to a US$ 30bn investmentfrom OGX  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 (285,000 jobs in 5 years)Strategic  Partnership with the largest shipbuilder in the worldPartnership with  State-of-the-art technology and transfer of know-howHyundai  Large, scalable shipyard at Açu  ITN – Naval Technology Institutes, partnerships with technical institutions and universitiesTraining (ITN)  Absorption and application of Korean technology  Qualification of 7,800 technical personnel until the end of 2013Incentivized and  More than 30 years experience, on average, in the E&P sectorExperienced  US$ 30bn in projects and more than 50,000 people under managementManagement Team 3
  4. 4. OGX: Anchor Client 57 oil & gas discoveries to date OGX Highlights Exploratory Success in the Drilling Campaign LINGUADO Campos Basin T Aracaju Prospect  Largest Brazilian private E&P player in terms of Pipeline Prospect Netpay of 40 meters BM-C-39 C POLVO Netpay of 165 meters offshore exploratory acreage BM-C-40 Discovery between 1,000 – 2,000 M boe R Belém Prospect Netpay of 43 meters  10,8 billion boe of risked prospective resources, PEREGRINO D with over 80% located offshore in Brazil BM-C-37 Waimea Prospect G C B MAROMBA Netpay of 130 meters BM-C-38 D I BM-C-41 PAPA-TERRA Vesuvio Prospect Netpay of 57 meters 22 offshore blocks and 8 onshore blocks in 5 Discovery between 500 – 900 M boeH J N  K BM-C-42 E B F BM-C-43 Discovery between 500 - 1,500 M boe different sedimentary basins in Brazil and 5 blocks Santos Basin Etna Prospect onshore in 3 sedimentary basins in Colombia G Netpay of 91 BM-S-56 S Ingá Prospect meters M BM-S-58 Netpay of 12 meters Discovery between BM-S-57 500 – 1.000 M boe BM-S-59 L OGX Offshore Blocks (Sept. 2009) H Huna Prospect Netpay of 52 MEXILHÃO J Vesúvio Direcional Prospect meters Netpay of 60 meters OGX blocks L Hawaii Prospect Unrisked Probability of Risked Risked Netpay of 64 meter Oil Field Basin Blocks Resources Geological Resources Resources Total Success Total OGX Campos 7 9.350 44,10% 4.124 3.693 Basin D&M Report 2011 Santos 5 6.659 27,00% 1.796 1.688 Campos 5.700* Espírito 5 5.017 32,60% 1.634 817 Santos 1.688 Santo + 30% Pará Espírito Santo 817 5 2.104 21,30% 447 447 Maranhão Pará Maranhão 447 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
  5. 5. OGX: Significant Demand Expected Base case order book of 48 offshore E&P units equivalent to US$ 30bn Expected Demand for Offshore Equipment OGX Production Targets - kboepd (2011-2019) - Number of units 1,380 FPSO 19 CAGR: 70% TLWP 5 WHP 24 730 Total 48* Source: OGX * Considering 2009 D&M Report 20 Delivery Timeline 2011E 2015E 2019E 13 • OSX2: to be delivered in 12• Initial production expected to begin 2011 mid 2013 (IPO: Dec 2012) 6 6• 1stFPSO already contracted for a period of 20 6 6 years, at an average day rate of US$ 263,000 5 2 1 2 4 1 3 5 1• Expected CAGR of 70% between 2011 and 2019 1 5 5 2 1 4 3 1 1 1 2 1 1 1 2011E 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E 5
  6. 6. Pre-Salt Resources Pre-salt discoveries strongly contribute to increase in Brazilian resources of up to 100Bboe Local Content Requirement Pre-salt Resources Area Exploratory Blocks Total Area • 149,000 km2 OGX Blocks Oil and Gas Fields Estimated • Additional ~ 70 billion boe (only in pre-salt) Resources Pre-salt Reservoir (Petrobras/CNPE/ANP) Production • FPSO units, deepwater environment Development Required • US$ 111bn 2009-2020E Capex • US$ 33bn 2010-2014ESource: Petrobras (updated in June 2011) Espírito Santo Super Basin Porto do Açu Petrobras Local Production Forecast ( thousad bpd ) 3.950 Ex-Pre Salt Cmpos Basin 1.078 Pre Salt 2.980 241 2.100 2.872 2.739 2.100 Santos Basin 2010 2014 2020 Source: Petrobras Petrobras’ capex: US$ 111 billion Source: Petrobras – (Company Presentation) (updated in June 2011) 6
  7. 7. Strong Demand: 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 (number of E&P equipment units) OGX (FPSOs Only) 32 Petrobras (FPSOs + 28 Rigs) 27 18 22 16 13 11 8ExistingCapacity 3 3 2011E 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E Note: Including already ordered equipment Source: Verax Capacity Estimates: Source OSX 7
  8. 8. Local Content: Rationale and Evolution The local content requirement represents a social and economic development strategy and has significantly increased in recent ANP bidding rounds Local Content Requirement Local Content Evolution 89% 86% 84% Definition: minimum percentage of equipment and Exploration Phase 81% 77% services contracted by the operator that must be Development Phase 86% supplied by local companies 79% 79% 54% 74% Average 70% in the production development phase 69% 48% Component of the bid for acquisition of E&P Blocks 40% Certification of each item by inspection companies 27% 42% Source: ANP (guidelines set forth by Federal Government – MME) 39% Note (1) 8th ANP bidding round 25% 28% auction is still under discussion Subject to severe penalties 1st 2nd 3rd 4th 5th 6th 7th 8th (1) 9th 10th Local 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 8
  9. 9. Brazilian Shipyards Local shipyards are not prepared to serve expected offshore E&P equipment demand Main Shipbuilders in Brazil Current Brazilian Shipyard Condition Mac Laren EAS ERG Brasfels Mauá MacLarenCommitted Slots MauáSite Area (km2) 1.6 0.5 0.5 0.4 0.1Technology PartnerSteel Processing Capacity(Kton / year) 160 60 50 36 6 BrasfelsFocus on OffshoreEquipmentLogisticsLabor ForceSource: Verax “A construction slot in OSX’s shipyard is worth more than gold” 9
  10. 10. Strategic Partner: Hyundai Heavy Industries OSX Shipbuilding Unit under development in partnership with the largest shipbuilder in the worldRationale and Overview Why Hyundai? Efficiency Comparison  10% equity investment in OSX  Proven track record: founded in  Significant upside potential Shipbuilding Unit 1972 for OSX  Largest shipbuilder in the HHI Offshore division processes  State-of-the-art technology — world: 10% market share (2010) 550,000 tons of steel/year in  Transfer of know-how and  Delivered more than 1,600 2,500,000 m² training vessels to more than 250 ship — OSX should process in its initial  Accelerate learning curve: owners in 47 countries to date stage 180,000 tons of steel/year distill 38 years of experience  One of the leaders in offshore and integrate 220,000 tons/year equipment fabrication in the in 2,000,000 m² into 2 years world, handling over 100  Efficiency gains could drive  Technology and services turnkey EPIC projects for more potential processing capacity contract for shipyard design than 30 oil and gas majors expansion and transfer of know-how for  Delivered FPSO’s and fixed platforms to clients such as  OSX’s goal is to reach Asian at least 10 years productivity levels after two ExxonMobil, Petrobras, Shell, Chevron and BP years of operation 10
  11. 11. Açu Industrial Complex A new cluster for the offshore and heavy industry90 km² Industrial Complex (1.5 x larger than Manhattan Island) 11
  12. 12. 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 12
  13. 13. Açu Site: Competitive Advantages Welding economies: 18m steel plate, 56% less welding, savings of US$ 3.5 MM/FPSO Energy savings: 30% estimated reduction (US$ 4.0 MM/year) Weather conditions: Less than 30% of rainy days per year Soil advantages: less foundation required Integration slots: Up to 3,525m of quay allowing simultaneous integration of 9 FPSOs and the construction of 8 WHPs. (6 FPSOs and 2,400m at 1st phase) Proximity to Campos Basin: approximately 150 km 13
  14. 14. Product Portfolio Description Main Systems for Standardization Target • Floating Production Storage and OSX Flex Engineering Offloading • Conceived to process oils of different FPSO • Hull: conversion of oil tanker or characteristics (different API grade, gas/oil new-build ratio, water/oil ratio Sister Vessels • Tension-Leg Wellhead Platform • Reduction in project time and conversion costs TLWP • Suited for deepwater environments • Accelerates the learning curve in the operation and maintenance • Wellhead Platform or fixed WHP’s Standardization production platforms in general WHP •Optimization of assembly and fabrication • Suited for shallow-water environments •Designed to operate in a range of water depths • Drilling units for exploration Equipment Standardization Drillships • Heavily demanded in ultra- • Key systems deepwater • Supplied with increased security and speed systems in the long run • Navigation transportation unit • Pre negotiated contracts with minimum demand Tankers • Demand for long course guaranteed navigation units, cabotage, • Inventory and maintenance optimization relievers and production platforms 14
  15. 15. ITN –Naval Technology InstituteThe ITN is designed to have 4 areas of activity.Phase I began during the 3rd quarter 2011 Phase I- Qualification and Training — on 1st July 2011, OSX entered into an agreement with FIRJAN for the training of up to 3.100 pepole in 23 job functions (welders, mechanics, among others) — in this first phase, SENAI’s facilities and faculty in the city of Campos shall be utilized as well as mobile units in São João da Barra — classes shall commence in 2012 — estimated investment for this phase is approx. R$ 12.7 million 15
  16. 16. ITN –Naval Technology Institute Phase II- Training at UCN Açu: — contemplates several training activities, technical assistance and supervision of operations in partnership with Hyundai (40 specialists based in Brazil for 5 years) — 50 employees from UCN Açu to be trained at Hyundai’s shipyard in Ulsan, South Korea — construction of ITN at UCN Açu, with an area of approximately 1,800 m2 — facilities for workshops, labs, classrooms, auditorium and library — implementation of systems for simulation of operations of offshore units Phase 1 – Employee Training ➜ Shipbuilding ➜ Operation & Maintenance of naval units Phase 2 – Knowledge, Dedication Technology & Inovation Timeline 16
  17. 17. ITN –Naval Technology Institute Phase III- Supply Chain Strengthening — Identification of suppliers that have the potential to develop new materials, equipment and innovative work methodologies, focused on OSX’s potential demand Phase IV- Technological Innovation — The ITN will establish partnerships with Brazilian and international academic institutions, focused on the development and assimilation of new technologies. Fase 2 – Conhecimento, Tecnologia e Inovação 17
  18. 18. RI@OSX.COM.BR+55 21 2555 6914

×