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1
May 2011
OSX – Institutional Presentation
2
Organizational Structure
OSX Ownership
OSX LeasingOSX Shipbuilding Unit OSX Services
Free Float
Integrated offshore E&Pequipment and
services provider
10% 90% 100% 100%
Holding
21.1%78.9%
3
Attractive Market
Conditions in Brazil
Local Content
Requirement
Strong Demand
from OGX
Strategic
Partnership with
Hyundai & Unique
Location
Strong Current
Order Book
Incentivized and
Experienced
Management Team
OSX Highlights
• More than 30 years experience, on average, in the E&P sector
• US$ 30bn in projects and more than 50 thousand people under management
• 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
• Partnership with the largest shipbuilder in the world
• State-of-the-art technology and transfer of know-how
• Large, scalable shipyard at Açu
• Expected oil and gas resources to increase to 100 Bboe, with announced investments of
US$ 140bn plus
• Underserved domestic equipment & services market
• 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 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 2013
4
Exploratory Success in the Drilling Campaign
OGX: 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
sedimentary basins
Source: D&M Report and OGX presentations
OGX Highlights
(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
Santo5 5,017 32.60% 1,634 817
Pará
Maranhão5 2,104 21.30% 447 447
Total 22 23,130 34.59% 8,001 6,645
1-MRK-1-SPS
1SPS 0019 SP
1SPS 0014A SP1SPS 0014 SP
1BSS 0067 BS
LAGOSTA
MERLUZA
Blocos OGX Campos de Produção
0 4 8 12 162 Km
A
35 wells with O&G discovered
Risked
Resources
C
DI
G
HK E
FBJ N
PEREGRINO
MAROMBA
POLVO
PAPA-TERRA
LINGUADO
BM-C-41
BM-C-38
BM-C-37
BM-C-42BM-C-43
BM-C-40
BM-C-39
OGX blocks
Oil Field
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
MEXILHÃO
BM-S-58
BM-S-56
BM-S-57
BM-S-59
Santos Basin
Waimea Prospect
Netpay of 130 meters
Discovery between 500 – 900 M boe
D
B
G
Etna Prospect
Netpay of 91 meters
Discovery between
500 – 1.000 M boe
HHuna Prospect
Netpay of 52 meters
J
Vesúvio Direcional
Prospect
Netpay of 60 meters
LHawaii Prospect
Netpay of 64 meter
SIngá Prospect
Netpay of 12 meters
Aracaju Prospect
Netpay of 40 meters
T
Belém Prospect
Netpay of 43 metersR
C
Basin D&M Report 2011
Campos 5,700*
Santos 1,688
817
447
Espírito
Santo
Pará
Maranhão
Total 8,652
* 3C + Delineation + Prospective
5
OGX: Significant Demand Expected
Base case order book of 48 offshore E&P units equivalent to US$ 30bn
OGX Production Targets - kboepdExpected Demand for Offshore Equipment (2011-2019) in
Number of units
• Initial production expected to begin 2011
• 1st FPSO already contracted for a period of 20 years, at an
average day rate of US$263,000
• Expected CAGR of 70% between 2011 and 2019
Source: OGX
FPSO
TLWP
WHP
19
5
24
Source: OGX
Total 48*
Delivery Timeline
2019E2015E2011E
20
730
1,380CAGR:
70%
12
45
3
1 1
1
2
1
1
3 5
66
2
2
1
2011E 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E
1
5
6
12
13
6
4
1
1
5
1
* OSX2: to be delivered in mid 2013 (IPO:Dec12)* OSX5: to be delivered in 1Q 2015 (IPO:Dec14)
* Considering 2009 D&M Report
6
Current Order Book - OGX
EQUIPMENT CAPACITYESTIMATED CAPEX
US$ MMFIRST OIL
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
7
Pre-Salt Resources
Pre-salt discoveries strongly contribute to increase Brazilian resources of up to 100Bboe
Petrobras Local Production Forecast
(thousand bpd)
Petrobras’ capex: US$111 billion
Additional ~ 70 billion boe (only in pre-salt)
FPSO units, deepwater environment
US$ 111bn 2009-2020E
US$ 33bn 2010-2014E
Total Area
Estimated
Resources
Production
Development
Required
Capex
112,000 km2
Source: Petrobras, ANP
Source: Petrobras
Pre-salt Resources Pre-salt Resources Area
Source: Petrobras (Company Presentation)
Espírito Santo Basin
Campos Basin
Santos Basin
Exploratory Blocks
OGX Blocks
Oil and Gas Fields
Pre-salt Reservoir
(Petrobras/CNPE/ANP)
Açu Super-Port
2,0502,461 2,758
2,404 2,105
582 1,336 1,815
2,050
2,680
3,3403,740
3,920
219
2009 2013E 2015E 2017E 2020E
Ex-Pre Salt Pre Salt
8
Consolidated Potential Demand (E&P number of equipment)
3 3
22
8
32
18
27
13
16
11
2011E 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E
Existing Capacity
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)
OGX (FPSOs Only)
Petrobras (FPSOs + 28 Rigs)
Note: Including already ordered equipment
Source: Verax
Capacity Estimates: Source OSX
9
Local Content Requirement
Local 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
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
• 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
(guidelines set forth by Federal Government – MME)
• Subject to severe penalties
25%
42%
28%
39%
79%
86%
74%69%
79%
27%
48%
40%
54%
86%89%
81%77%
84%
1st 2nd 3rd 4th 5th 6th 7th 8th (1) 9th 10th
Exploration Phase Development Phase
10
Brazilian Shipyards
Local shipyards are not prepared to serve expected offshore E&P equipment demand
Main Shipbuilders in Brazil Current Brazilian Shipyard Condition
Brasfels
Mac Laren
Committed Slots
Site Area (km2)
Technology Partner
Steel Processing Capacity
(Kton / year)
Focus on Offshore
Equipment
Logistics
EAS ERG Brasfels Mauá MacLaren
Labor Force
Source: Verax
1.6 0.5 0.5 0.4 0.1
160 60 50 36 6
“A construction slot in OSX’s shipyard is worth more than gold”
Mauá
11
Strategic 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
• Technology and services contract for
shipyard design and transfer of know-how
for at least 10 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
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
• 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
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
Why Hyundai? Efficiency Comparison
12
Açu Site
Approval of macro drainage project: March 31st 2010
“The largest shipyard to be built in the Americas”
13
Açu Industrial DistrictA new cluster for heavy industry
13
14
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
Quay
FPSO
Green
curtain
Platforms
construction areas
Administrati
ve buildings
Industrial Unit
Modules
construction
areaDrydock and
effluent station
treatment
Administrative
buildings with
Leed - US Green
Building
Electric Substation 345 kV – 13.8
kV
Platforms
assembling
area
Effluent treatment station
Water treatment station
15
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
16
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
17
Product Portfolio
• Floating Production Storage and
Offloading
• Hull: conversion of oil tanker or new-
build
• Tension-Leg Wellhead Platform
• Suited for deepwater environments
• Drilling units for exploration
• Heavily demanded in ultra-deepwater
• Wellhead Platform or fixed production
platforms in general
• Suited for shallow-water environments
Description
• Pull-in and Mooring Systems
• Cranes
• Power Generation
• Automation Systems
• Bulk Materials
• Processing Systems
• Safety Systems
Main Systems for Standardization Target
FPSO
TLWP
WHP
Drillships
Tankers
• Navigation transportation unit
• Demand for long course navigation units,
cabotage, relievers and production
platforms
18
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