The document provides a project update on the Açu Industrial Complex in Rio de Janeiro, Brazil. Construction is underway on infrastructure including quays, buildings, and dredging canals. Delivery of key areas and equipment is expected between 2012-2014. The FPSO OSX-1 arrived in December 2011 and began production in January 2012. Long term financing of $1.9 billion was secured for construction through government funds and private banks. Additional FPSOs and production platforms are on order to develop fields for oil company OGX according to milestones in 2012-2013.

1. PROJECT UPDATE
Rio de Janeiro | January 2012 |

2. Shipbuilding FPSO OSX-1

3. AÇU INDUSTRIAL COMPLEX
A New Cluster for the Offshore and Heavy Industry
GE
90 km² Industrial Complex (1.5 x larger than ManhattanManhattan)
90 km² Complexo Industrial (1,5x maior que a ilha de Island)

4. UCN AÇU: LAYOUT
Platform construction
area
Jacket assembly
area Module construction
area
Dry dock
and ETS Green Curtain
Industrial unit ETA
Administrative
FPSO buildings
Quays
Administrative
buildings with LEED
Electricity Substation Certification (US Green
345 kV – 13.8 kV Building Council)
90 km² Complexo Industrial (1,5x maior que a ilha de Manhattan)

5. UCN AÇU: LICENSING SCHEDULE
Preliminary Installation
EIA/RIMA Public License License Beginning of
Filling Hearings Issuance Issuance Construction
P
Oct-10
P
Jan-11
P
Feb-11
P
Jun-11
P
Jul-11

6. UCN AÇU: SHIPBUILDING UNIT SCHEDULE
PACKAGES PROCUREMENT MOBILIZATION
REMOVAL OF VEGETATION 2Q11 P 2Q11 P
PREPARATION OF THE TERRAIN 3Q11 P 3Q11 P
NORTH QUAY AND JACKET'S AREA 4Q11 1Q12
DRY DOCK 4Q11 1Q12
SOUTH QUAY AND RESPECTIVE RETRO AREA 4Q11 1Q12
INDUSTRIAL BUILDINGS 3TQ1 P 4Q11
UTILITIES AND INFRASTRUCTURE 3Q11 P 3Q11 P
ADMNISTRATIVE BUILDINGS (LEED) 1Q12 1Q12
AUXILIARY BUILDINGS (NON-LEED) 4Q11 1Q12
ELECTROMECHANICAL ASSEMBLY 1Q12 2Q12
SUPERVISION SUPPORT 2Q11 P 2Q11 P
CONSTRUCTION SITE 3Q11 P 3Q11 P
BREAKWATER 1Q11 P 1Q11 P
DREDGING 3Q11 P 3Q11 P

7. UCN AÇU: ESTIMATED PARTIAL DELIVERIES
UCN Sections (Ready) 2012 2013 2014
AREA 1 FOR ASSEMBLY OF JACKETS 4th QUARTER - -
AREA 2 FOR ASSEMBLY OF JACKETS - 1st QUARTER -
AREA FOR INITIAL CUTTING OF STEEL PLATES - 1st QUARTER -
SLOT 1 FOR FPSO INTEGRATION - 1st QUARTER -
SLOT 2 FOR FPSO INTEGRATION - 2nd QUARTER -
SLOT 3 FOR FPSO INTEGRATION - 3r d QUARTER -
SLOT 4 FOR FPSO INTEGRATION - 4th QUARTER -
SLOT 5 AND 6 FOR FPSO INTEGRATION - - 2nd QUARTER
COMPLETION OF CONSTRUCTION OF UCN - - 2nd QUARTER

8. UCN AÇU: FINANCING
Fundo da Marinha Mercante (Merchant Marine Fund)
Credit facility: 80% CAPEX
Total tenor ranging from 18 to 20 years with a grace period of up to 3
years and interest rates that vary from US$ + 2% to US$ + 4% per year
Lending Agents: BNDES, Caixa Econômica Federal, Banco do Brasil, BNB
and Banco da Amazônia

9. UCN AÇU: FINANCING
Capex distribution per year/activity
14,4% 63,6% 20,1% 1,9%
2011 2012 2013 2014
DESCRIPTION OSX (US$) LLX (US$)
DREDGING AND ENGINEERING 93 90
BREAK WATER 135 129
QUAY 262 -
BUILDINGS 339 -
DRY DOCK 133 -
ROADS AND PAVING 146 -
EQUIPMENT, ENGINEERING AND ENVIRONMENT 487 -
OTHERS 119 -
TOTAL OF
TOTAL $1.714 $219 US$ 1,933 MM

10. UCN Açu:
Break Water

11. UCN Açu:
Construction of the canal

12. UCN AÇU: PHOTOGRAPHS OF THE CANAL

13. UCN AÇU: EARTHWORKS

14. UCN AÇU: CANTEEN

15. Leasing & Services
FPSO OSX-1

16. CURRENT ORDER BOOK STATUS: OGX
ESTIMATED CAPEX
EQUIPMENT CAPACITY DELIVERY*
(US$ MM)
FPSO OSX-1 80K bopd 610 3Q 2011
FPSO OSX-2 100K bopd 775 2Q 2013
FPSO OSX-3 100K bopd 800 3Q 2013
FPSO OSX-4 100K bopd 850-900 2Q 2014
FPSO OSX-5 100K bopd 850-900 4Q 2014
WHP-1 30 wells 400-450 3Q 2013
WHP-2 30 wells 400-450 4Q 2013
Total 4,685 - 4,885
* delivery at the shipyard (ex installation)

17. FPSO OSX-1

18. FPSO OSX-1: CUSTOMIZATION

19. FPSO OSX-1: DESTINATION WAIMEA
6th October 2011: Arrival of OSX-1 in RJ, Brazil
25th December 2011: Sail-away of the FPSO OSX-1
from the port of Rio de Janeiro
26th December 2011: Final inspection on
the FPSO OSX-1
7th January 2012: Connection of the FPSO OSX-1
to the turret
23rd January: FPSO OSX-1 ready and beginning
of production

20. FPSO OSX-1: CREW
Total of 89 crew members
Age Years of Experience
4%
14% 20 to 30 years 19%
30 to 40 years Less than 20 years
28%
40 to 50 years 49% 20 to 30 years
26%
50 to 60 years Greater than or equal
to 30 years
32%
Greater than or equal
to 60 years
28%

21. WHP-1 OSX-2
OSX-2 / WHP-1 SYSTEM
OGX MODEL

22. OSX-2 / WHP-1 SYSTEM
OSX-2 WHP-1
Milestone Date Milestone Date
Arrival of hull at Keppel shipyard
(Singapore) 3r d Quarter 2011 Start of construction and assembly 4th Quarter 2011
P&IDs approved for construction 2nd Quarter 2011 Load Out of WHP-1 3r d Quarter 2013
FPSO departure from yard 2nd Quarter 2013
Construction Contract Construction Contract
■ EPCI contract signed with SBM ■ Signing of LOI with Techint – 1Q11
■ Acquisition of VLCC – accomplished ■ Start of Engineering – 1Q11
Long term debt commitment ■ Contract signed with Techint
■ LOI for Drilling Package signed with TTS
■ Facility agreement entered into lead by ING, Itaú-BBA and
Santander: US$ 850 million (12 years, LIBOR +4,41% p.a.)
■ Other financial institutions participating in the syndicate : HSBC,
Citibank, ABN Amro Bank, Banco do Brasil, NIBC and DnB Nor
■ Debt/Equity structure : 80/20

23. WHP-2 OSX-3
OSX-3 / WHP-2 SYSTEM
OGX MODEL

24. OSX-3 / WHP-2 SYSTEM
OSX-3 WHP-2
Milestone Date Milestone Date
th th
Arrival of hull at conversion shipyard 4 Quarter 2011 Start of construction and assembly 4 Quarter 2011
st th
P&IDs approved for construction 1 Quarter 2012 Load Out of WHP-2 4 Quarter 2013
rd
FPSO departure from yard 3 Quarter 2013
Construction Contract Construction Contract
■ Aquisition of VLCC - accomplished ■ Signing of LOI with Techint – 1Q11
■ EPCI contract signed with MODEC ■ Start of Engineering – 1Q11
■ Contract signed with Techint
Long term debt commitment
■ Financing: 1st half 2012

25. FPSO OSX-4
Milestones achieved and next steps
 VLCC sister hulls acquired by OSX in Nov. 2010 :
US$ 27 million each
 FPSO OSXFLEX concept contracted with CKE
Consortium (Chemtech, Kromav and Exactum)
 Close-up Survey of the hulls performed by ShipScan
and monitored by Bureau Veritas
Milestone Date
 Preparation Stage: engineering project for Specifications for hull
1st Q2012
conversion of the hulls conversion
End of hull conversion 4th Q2012
 Integration UCN Açu : 2Q2013 marking the start-up
of UCN Açu’s activities Arrival of hull at UCN slot 1 2nd Q2013
 Delivery at UCN Açu in 2Q2014 Delivery by the shipyard 2nd Q2014

26. FPSO OSX-5
Milestones achieved and next steps
 VLCC sister hulls acquired by OSX in Nov. 2010 :
US$ 27 million each
 FPSO OSXFLEX concept contracted with CKE
Consortium (Chemtech, Kromav and Exactum)
 Close-up Survey of the hulls performed by ShipScan
and monitored by Bureau Veritas
Milestones Date
 Preparation Stage: engineering project for
conversion of the hulls Specifications for hull repair 2nd Q2012
 Integration UCN Açu : 3Q2013 marking the start-up End of hull conversion 2nd Q2013
of UCN Açu’s activities Arrival of hull at UCN slot 2 3rd Q2013
 Delivery at UCN Açu in 4Q2014 Delivery by the shipyard 4th Q2014

27. UCN – Occupation of slots by FPSOs
Slot Delivery Arrival of Vessel Delivery by UCN
Slot 1: 1Q13 OSX 4: 2Q13 OSX 4: 2Q14
Slot 2: 2Q13 OSX 5: 3Q13 OSX 5: 4Q14
Slot 3 Slot 3: 3Q13 OSX 6: 3Q13 OSX 6: 4Q14*
Slot 4
Slot 4: 4Q13 OSX 7: 4Q13 OSX 7: 4Q14*
Slot 5
Slot 1 Slot 5: 2Q14 OSX 8: 2Q14 OSX 8: 2Q15*
Slot 2 Slot 6 Slot 6: 2Q14 OSX 9: 2Q14 OSX 9: 3Q15*
* Subject to new orders from OGX

28. Project Accelerators

29. PROJECT ACCELERATORS
Standardization of Equipment
 Maximize competitiveness through standardization of production units
 Reach 70% of standardization of units (plant and deck)
 Signature of long-term contracts with suppliers
Key Systems Sept/11 Other Systems Feb/11
 Water injection  Water harvesting
 Cargo handling  Compressed air
 Energy generation  Fire Fighting System
 Gas compression  Tubing and Accessories
 Offloading System  Load pump
 Supervisory System  Ballast pumps
 Anchoring and Turret System

30. PROJECT ACCELERATORS
OSX Flex Engineering
Advantages
 Modules can be removed without damaging the project
 Capable of treating a range of oil specifications
 Potential gain: 5 months in the engineering phase
Status
 Contract signed with Chemtech-Kromav-Exactum
 First OSXflex units: OSX-4 and OSX-5
MIN MAX MIN MAX MIN MAX
API RGO LDA

31. ITN- INSTITUTE OF NAVAL TECHNOLOGY
Objectives
 Qualification of up to 3,100 personnel in 23
functions by the end of 2012
 Use of SENAI’s facilities and faculty in the city of
Campos, as well as mobile units in São João da SENAI Macaé
Barra. Macaé in the future
 Scholarships providing financial assistance, food and
SENAI Campos
transportation
 Estimated budget: R$ 12.7 million
SENAI São João da Barra

32. ITN- INSTITUTE OF NAVAL TECHNOLOGY
Phase I: Qualification and Training
Approx.
City Work force Population
distance
São João da Barra 20 Km 6.000 33.000
Campos 40 Km 92. 000 460.000
Radius Up to 50 Km 98.000 493.000
Quissamã 75 Km 3000 20.000
São Francisco 95 Km 3.000 41.000
São Fidelis 100 Km 5.000 37.000
Macaé 130 Km 113.000 206.000
Radius 2 Up to 150 Km 222.000 797.000
 Curriculum planning
 Adapting the necessary facilities
 Classes scheduled to commence in January 2012
 Organization and production of teaching material

33. ITN Phase II: Training at UCN Açu
 40 specialists from Hyundai based in Brazil for 5 years
 50 employees from UCN Açu to be trained at Hyundai’s
shipyard in Ulsan, South Korea (4 groups from August 2012
through April 2014)
 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 and
offshore units

34. 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
 Establish partnerships with Brazilian and international academic
institutions, focused on the development and assimilation of
new technologies

35. Next Milestones
 First Oil OGX – January 2012
 Beginning of construction: WHP-1 and WHP-2
 Financing: OSX-3, WHP-1 and WHP-2
 Contract shipyard to convert the OSX4 and OSX5 hull’s
 Shipyard financing contract (Merchant Marine Fund)
 New orders from OGX
 Orders from third parties

37. RI@OSX.COM.BR
+55 21 2555 6914