The document provides a project update on the Açu Shipyard in Brazil. It discusses the shipyard's licensing process and outlines its site layout. Advantages of the Açu site over an alternative in Biguaçu are presented, including lower construction costs from larger steel plates and better weather. The capital expenditure budget is given along with details of OSX's current order book from OGX, including timelines and costs for 5 FPSOs and 2 WHPs. Construction progress updates are provided for the first FPSO.

1. Project Update
May, 2011

2. Açu Shipyard – Licensing
• Reference Term
• EIA filling
• Public Hearing
• Preliminary License
• Next steps:
• Installation License
• Beginning of Construction
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3. Açu Shipyard – Industrial District
A new cluster for Heavy Industry
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4. Açu Shipyard – Setup
Platforms Platforms construction
assembling areas
area
Modules
Drydock and construction area
effluent station
treatment
Green curtain
Effluent treatment station
Water treatment station
FPSO Industrial Unit Administrative
buildings
Quay
Administrative
Electric Substation 345 kV – 13.8 kV buildings with Leed -
US Green Building
A new cluster for Heavy Industry
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5. Açu Shipyard – Advantages
1. Welding Savings with 18m steel plate: 56% less welding
• US$ 3.5 million cost saving and 28 days reduction in construction / FPSO
• US$ 1.9 million and 24 days reduction in construction / WHP
Biguaçu Açu
20M 20M
1 2 3 4 5 6 7 8 9 9M
18M 18M 1 2 3 4 5
9M
2.4M 2.4M 2.4M 2.4M 2.4M 2.4M 2.4M 2.4M 4M 4M 4M 4M 4M
WELDING LENGTH: (18M 8point) + 20m 20M = 182 M
Welding length: (18m x * 9POINT) + = 164m Welding lenght: (18m x 4point) =72m
2. Energy Savings : 30% reduction
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6. Açu Shipyard – Advantages
3. Weather conditions: 25% more sunny days with 5% efficiency increase per
month at Açu
Site Rain/month Rain/year
Biguaçu 12 days 140 days
Açu 9 days 108 days
4. Soil Advantages : less foundation required
At Biguaçu we would invest US$ 371 million in order to upgrade the soil
At Açu we will invest US$ 142 million to upgrade the soil
The remaining US$ 229 million will be invested in the rock walls and channel
construction, and the rest of the channel construction will be invested by LLX (US$
219 million)
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7. Açu Shipyard – Advantages
5. Integration Slots : Up to 3,525m quay
Expansion + Dry Dock
Site FPSO JACKET
Biguaçu 6 6
Açu 8* 8
Increase 33% 33%
* If considering expanded layout with 3,525 m: 11 slots
6. Proximity to Campos Basin ( ≈ 150Km)
FPSO / WHP traveling days to Campos Basin
Biguaçu: 4,5 days
Açu: 0,5 day 6

8. Açu Shipyard – Capex
Preliminary Budget - USD (MM) Total LLX OSX
Common Infrastructure 448 219 229
Investigation and 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
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9. 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
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10. FPSO OSX 1
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11. FPSO OSX 1 – Customization
MODIFICATION WORK
M380 New
NEW INSTALLATION
M230 New
M350 New
M320 Mod.
M200 New
M260 Mod.
M290 Mod.
N160 Mod.
N130 Mod.
Hull / Engine Room Mod. F110 Mod.
Central Pipe Rack Mod.
M430 Mod.
M400 Mod.
M310 New
M280 Mod.
M250 New M220 Mod.
W140 Mod.
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12. FPSO OSX 1 – Customization
OSX 1 FPSO First Steel Cutting Ceremony Safety Briefing and Fire Drill Exercise
Module M380 Fabrication
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13. FPSO OSX 1 – Customization
Dimension Checks Staging for Painting Works for Fire Fighting System
Staging in Engine Room Staging for Painting Works for Fire Fighting System
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14. FPSO OSX 1 – Customization
Buoy overview
Assembly Buoy – Turret – Turret Tank
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15. FPSO OSX 1 – Customization
Evolution of the Works
FPSO OSX 1
100%
95%
90%
Purchase
85%
80%
First Oil
75%
Delivery in
70% Singapore
65%
60%
Planned Actual
DEC/10 JAN/11 FEB/11 MAR/11
PLANNED 78.88% 79.68% 83.38% 88.11%
ACTUAL 76.92% 79.06% 80.88% 84.47%
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16. FPSO OSX 1 – Operations Start Up
Personnel Admission
No. of employees DEC/10 JAN/10 FEB/11 MAR/11
PLANNED 37 49 50 58
ACTUAL 37 44 46 61
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17. FPSO OSX 1 – Operations Start Up
Age Experience time
8% 6%
20 to 30 years
27%
30 to 40 years Less than 20 years
24%
43%
27%
40 to 50 years 20 to 30 years
50 to 60 years Greater than or equal to
30 years
Greater than or equal to
30%
60 years
35%
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18. FPSO OSX 2
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19. FPSO OSX 2
Expected Timeline Status
GTD
RFP
First oil 3Q 2013
Construction Contract
• EPCIC ( Engineering, Procurement,
Construction, Installation and
Commissioning) contract executed
with SBM Offshore
Long term debt commitment
• Proposals with 100% underwriting
• Mandated and with negotiated term sheet
• Debt/Equity Structure – 80/20
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20. FPSO’s OSX 3, OSX 4
and OSX 5
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21. FPSO’s OSX 3, OSX 4 and OSX 5
Gemini Star Suhail Star
• Two sister VLCC´s (Very Large Crude Oil Carriers)
purchased on November, 2010
• Purchase price: USD 27 million / each
•VLCC Gemini Star received in January 13th, 2011 and
VLCC Suhail Star received in February 22nd, 2011
• Purchased from Vela International Marine Limited
(subsidiary of Saudi Aramco)
• OSX and OGX are studying the possibility of building
OSX3 abroad , using the vessels for OSX4 and OSX5
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22. WHP 1 and WHP 2
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23. WHP 1 and WHP 2
Expected Timeline Status
GTD
RFP
Platforms construction contract* ongoing
Construction and assembling of jackets*
• Letter of Intent executed with Techint
Drilling Package**
• Ongoing tender
• Proposals received on December 8th
from AKER, NOV, TTS e SEAWELL
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