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Osx institutional ingls_june2011_v1

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Osx institutional ingls_june2011_v1

  1. 1. 1 June 2011 OSX – Institutional Presentation
  2. 2. Organizational Structure OSX OwnershipOSX Ownership Free Float 21.1%78.9% 2 OSX LeasingOSX Shipbuilding Unit OSX Services Integrated offshore E&P equipment and services provider 10% 90% 100% 100% Holding
  3. 3. Attractive Market Conditions in Brazil Local Content Requirement Strong Demand from OGX OSX HighlightsOSX Highlights • Approximately 70% of E&P industry capex supplied locally • Key for Brazil’s long term social and economic development (285k jobs in the 5 yrs) • Priority Rights between OSX and 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 of US$ 140bn plus • Underserved domestic equipment & services market 3 Strategic Partnership with Hyundai & Unique Location Strong Current Order Book Incentivized and Experienced Management Team • More than 30 years experience, on average, in the E&P sector • US$ 30bn in projects and more than 50 thousand people under management • Partnership with the largest shipbuilder in the world • State-of-the-art technology and transfer of know-how • Large, scalable shipyard at Açu • Firm orders of $4.8 bn • FPSO OSX 1 to be delivered in 3Q 2011 • FPSO OSX 2 e OSX 3 to be delivered in 2Q 2013 and 3Q 2013 • FPSO’s OSX 4 and OSX 5 to be delivered in 2Q 2014 and 4Q 2014 • WHP’s 1 and 2 construction contract ongoing and to be delivered in 1Q 2013 and 2Q 2013
  4. 4. Exploratory Success in the Drilling Campaign OGX: Anchor ClientOGX: Anchor Client • Largest Brazilian private E&P player in terms of offshore exploratory acreage • 6.7 billion boe of risked prospective resources and 212 million boe of contingent resources, assuming a probability of success of 35% • 22 offshore blocks and 7 onshore blocks in 5 different OGX Highlights 35 wells with O&G discovered C D I G H K E F B J N P E R E G R IN O M A R O M B A P OLV O PA PA -TE R RA BM- C-41 BM -C-38 BM -C-37 B M -C-42 BM -C-43 BM -C-40 B M -C -39 C D I G H K E F B J N P E R E G R IN O M A R O M B A P OLV O PA PA -TE R RA BM- C-41 BM -C-38 BM -C-37 B M -C-42 BM -C-43 BM -C-40 B M -C -39 Campos Basin Vesuvio Prospect Netpay of 57 meters Discovery between 500 - 1,500 M boe Pipeline Prospect Netpay of 165 meters Discovery between 1,000 – 2,000 M boe M L M E X IL H Ã O B M -S - 5 8 B M -S - 5 6 B M -S - 5 7 B M - S -5 9 Santos Basin Waimea Prospect Netpay of 130 meters Discovery between 500 – 900 M boe DD BB GG Etna Prospect Netpay of 91 meters Discovery between 500 – 1.000 M boe HH Huna Prospect Netpay of 52 meters JJ Vesúvio Direcional Prospect Netpay of 60 meters SS Ingá Prospect Netpay of 12 meters Aracaju Prospect Netpay of 40 meters TT Belém Prospect Netpay of 43 meters RR CC 4 sedimentary basins Source: D&M Report and OGX presentations (1) Gross Prospective Resources OGX Offshore Blocks (Sept/09) Basin Blocks Unrisked Resources Total 1 Probability of Geological Success Total Risked Resources OGX Campos 7 9,350 44.10% 4,124 3,693 Santos 5 6,659 27.00% 1,796 1,688 Espírito Santo 5 5,017 32.60% 1,634 817 Pará Maranhão 5 2,104 21.30% 447 447 Total 22 23,130 34.59% 8,001 6,645 1-MRK-1-SPS A Risked Resources OGX blocks Oil Field LL Hawaii Prospect Netpay of 64 meter Basin D&M Report 2011 Campos 5,700* Santos 1,688 817 447 Espírito Santo Pará Maranhão Total 8,652 * 3C + Delineation + Prospective
  5. 5. OGX: Significant Demand ExpectedOGX: Significant Demand Expected Base case order book of 48 offshore E&P units equivalent to US$ 30bn OGX Production Targets - kboepd Expected Demand for Offshore Equipment (2011-2019) in Number of units FPSOFPSO TLWPTLWP WHPWHP 19 5 24 TotalTotal 48* 730 1,380 CAGR: 70% 5 • Initial production expected to begin 2011 • 1st FPSO already contracted for a period of 20 years, at an average day rate of US$263,000 • Expected CAGR of 70% between 2011 and 2019 Source: OGX Source: OGX TotalTotal 48* Delivery Timeline 2019E2015E2011E 20 1 2 4 5 3 1 1 1 2 1 1 3 5 6 6 2 2 1 2011E 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E 1 5 6 12 13 6 4 1 1 5 1 * OSX2: to be delivered in mid 2013 (IPO:Dec12) * OSX5: to be delivered in 1Q 2015 (IPO:Dec14) * Considering 2009 D&M Report
  6. 6. Current Order BookCurrent Order Book -- OGXOGX EQUIPMENT CAPACITY ESTIMATED CAPEX US$ MM DELIVERY FPSO OSX1 80K bopd 610 3Q 2011 FPSO OSX2 100K bopd 775 2Q 2013 FPSO OSX3 100K bopd 800-850 3Q 2013 6 FPSO OSX4 100K bopd 850-900 2Q 2014 FPSO OSX5 100K bopd 850-900 4Q 2014 WHP1 *30 wells 400-450 1Q 2013 WHP2 *30 wells 400-450 2Q 2013 Total 4,685 - 4,935 *18 wells for production,10 wells for water injection and 2 wells for gas injection
  7. 7. PrePre--Salt ResourcesSalt Resources Pre-salt discoveries strongly contribute to increase Brazilian resources of up to 100Bboe Additional ~ 70 billion boe (only in pre-salt) FPSO units, deepwater environment US$ 111bn 2009-2020E Total Area Estimated Resources Production Development Required 112,000 km2 Pre-salt Resources Pre-salt Resources Area Exploratory Blocks OGX Blocks Oil and Gas Fields Pre-salt Reservoir (Petrobras/CNPE/ANP) 7 Petrobras Local Production Forecast (thousand bpd) Petrobras’ capex: US$111 billion US$ 111bn 2009-2020E US$ 33bn 2010-2014E Required Capex Source: Petrobras, ANP Source: Petrobras Source: Petrobras (Company Presentation) Espírito Santo Basin Campos Basin Santos Basin Açu Super-Port 2,050 2,461 2,758 2,404 2,105 582 1,336 1,815 2,050 2,680 3,340 3,740 3,920 219 2009 2013E 2015E 2017E 2020E Ex-Pre Salt Pre Salt
  8. 8. Consolidated Potential Demand (E&P number of equipment) 32 27 Strong Demand for Offshore E&P Equipment in BrazilStrong 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) OGX (FPSOs Only) Petrobras (FPSOs + 28 Rigs) 8 3 3 22 8 18 13 16 11 2011E 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E Existing Capacity Note: Including already ordered equipment Source: Verax Capacity Estimates: Source OSX
  9. 9. Local Content Requirement Local Content: Rationale and EvolutionLocal Content: Rationale and Evolution The Local Content requirement represents a social and economic development strategy and has significantly increased over ANP’s bidding rounds Local Content Evolution • Definition: minimum percentage of equipment and services contracted by the operator that must be supplied by local companies • Average 70% in the production development phase • Component of the bid for acquisition of E&P Blocks • Certification of each item by inspection companies 42% 39% 79% 86% 74% 69% 79% 27% 48% 40% 54% 86% 89% 81% 77% 84% 9 Source: ANP Note (1) 8th ANP bidding round auction is still under discussion Notable Companies Committed to Local Content • Boost local oil & gas equipment and services industry • Incentivize local technology development • Substantially increase employment and income Local Content Rationale • Certification of each item by inspection companies (guidelines set forth by Federal Government – MME) • Subject to severe penalties 25% 28% 39% 1st 2nd 3rd 4th 5th 6th 7th 8th (1) 9th 10th Exploration Phase Development Phase
  10. 10. Brazilian ShipyardsBrazilian Shipyards Local shipyards are not prepared to serve expected offshore E&P equipment demand Main Shipbuilders in Brazil Current Brazilian Shipyard Condition Mac Laren Committed Slots Site Area (km2) Technology Partner EAS ERG Brasfels Mauá MacLaren 1.6 0.5 0.5 0.4 0.1 Mauá 10 Brasfels Technology Partner Steel Processing Capacity (Kton / year) Focus on Offshore Equipment Logistics Labor Force Source: Verax 160 60 50 36 6 “A construction slot in OSX’s shipyard is worth more than gold”
  11. 11. Strategic Partner: Hyundai Heavy IndustriesStrategic Partner: Hyundai Heavy Industries OSX Shipyard Unit under development in partnership with the largest shipbuilder in the world • 10% equity investment in OSX Shipyard • State-of-the-art technology • Transfer of know-how and training • Accelerate learning curve: 38 years of experience into 2 years Rationale and Overview • Proven track record: founded in 1972 • Largest shipbuilder in the world: 10% market share (2010) • Delivered more than 1,600 vessels to more than 250 ship owners in 47 countries to date • One of the leaders in offshore equipment • Significant upside potential for OSX – HHI Offshore division processes 550,000 tons of steel/year in 2,500,000 m² – OSX should process in its initial stage 180,000 tons of steel/year and Why Hyundai? Efficiency Comparison 11 experience into 2 years • Technology and services contract for shipyard design and transfer of know-how for at least 10 years • One of the leaders in offshore equipment fabrication in the world, handling over 100 turnkey EPIC projects for more than 30 oil and gas majors • Delivered FPSO’s and fixed platforms to clients such as ExxonMobil, Petrobras, Shell, Chevron and BP stage 180,000 tons of steel/year and integrate 220,000 tons/year in 2,000,000 m² • Efficiency gains could drive potential processing capacity expansion • OSX’s goal is to reach Asian productivity levels in two years of operation
  12. 12. AçuAçu SiteSite Approval of macro drainage project: March 31st 2010 12“The largest shipyard to be built in the Americas”
  13. 13. Açu Industrial DistrictAçu Industrial District A newA new clustercluster for heavy industryfor heavy industry 1313
  14. 14. AçuAçu SiteSite • 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 Green Platforms construction areas Modules construction area Drydock and effluent station treatment Platforms assembling area 14 Quay FPSO Green curtain Administrati ve buildings Industrial Unit treatment Administrative buildings with Leed - US Green Building Electric Substation 345 kV – 13.8 kV Effluent treatment station Water treatment station
  15. 15. AçuAçu Site: Competitive AdvantagesSite: Competitive Advantages • Welding savings with 18m steel plate: 56% less welding • Energy savings: 30% reduction • Weather conditions: 25% more sunny days (5% efficiency increase) 15 • Soil advantages: less foundation required • Integration slots: up to 3,525m of quay • Proximity to Campos Basin: approximately 150 km
  16. 16. AçuAçu Site: Preliminary BudgetSite: 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 16 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
  17. 17. Product PortfolioProduct Portfolio • Floating Production Storage and Offloading • Hull: conversion of oil tanker or new- build • Tension-Leg Wellhead Platform • Suited for deepwater environments Description • Pull-in and Mooring Systems • Cranes • Power Generation Main Systems for Standardization Target FPSO TLWP 17 • Drilling units for exploration • Heavily demanded in ultra-deepwater • Wellhead Platform or fixed production platforms in general • Suited for shallow-water environments • Automation Systems • Bulk Materials • Processing Systems • Safety Systems WHP Drillships Tankers • Navigation transportation unit • Demand for long course navigation units, cabotage, relievers and production platforms
  18. 18. Next MilestonesNext Milestones Installation License Shipyard Ground Breaking BNDES / FMM Financing FPSO OSX 2 Financing 18 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

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