Osx institutional inglês_august_final
- 1. OSX – Institutional Presentation August 2011 1
- 2. OSX Ownership Organizational Structure 78.9%* Free Float 21.1% Integrated offshore E&P Holding equipment and services provider 10% 90% 100% 100% OSX Shipbuilding Unit OSX Leasing OSX Services *Controlling Shareholder (78.67%) + Board of Directors (0.0107%) + Officers (0.1995%) 2
- 3. OSX Highlights • Priority Rights between OSX and OGX Strong Demand from 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 Attractive Market US$ 140bn plus Conditions in Brazil • Underserved domestic equipment & services market Local Content • Approximately 70% of E&P industry capex supplied locally Requirement • Key for Brazil’s long-term social and economic development (285,000 jobs in 5 years) Strategic • Partnership with the largest shipbuilder in the world Partnership with • State-of-the-art technology and transfer of know-how Hyundai • Large, scalable shipyard at Açu • ITN – Naval Technology Institutes, partnerships with technical institutions and universities Training (ITN) • Absorption and application of Korean technology • Qualification of 7,800 technical personnel until the end of 2013 Incentivized and • More than 30 years experience, on average, in the E&P sector Experienced Management Team • US$ 30bn in projects and more than 50,000 people under management 3
- 4. OGX: Anchor Client 43 oil & gas discoveries to date Exploratory Success in the Drilling Campaign LINGUADO Campos Basin T Aracaju Prospect Pipeline Prospect BM-C-39 POLVO Netpay of 40 meters C OGX Highlights Netpay of 165 meters BM-C-40 Discovery between 1,000 – 2,000 M boe R Belém Prospect • Largest Brazilian private E&P player in terms of offshore BM-C-37 PEREGRINO Netpay of 43 meters D Waimea Prospect C G MAROMBA Vesuvio Prospect exploratory acreage Netpay of 130 meters BM-C-38 D I BM-C-41 PAPA-TERRA J N Netpay of 57 meters B Discovery between 500 – 900 M boe H B F • 6.7 billion boe of risked prospective resources , assuming a K BM-C-42 E BM-C-43 Discovery between 500 - 1,500 M boe Santos Basin Etna Prospect probability of success of 35% Netpay of 91 meters BM-S-56 S Ingá Prospect G Netpay of 12 meters M Discovery between • 22 offshore blocks and 7 onshore blocks in 5 different BM-S-58 BM-S-57 500 – 1.000 M boe L BM-S-59 Vesúvio Direcional Huna Prospect J Prospect sedimentary basins H Netpay of 52 meters 1SPS 0014 SP1SPS 0014A SP MEXILHÃO Netpay of 60 meters 1-MRK-1-SPS A LAGOSTA Hawaii Prospect OGX blocks MERLUZA L 1SPS 0019 SP Netpay of 64 meter Oil Field OGX Offshore Blocks (Sept. 2009) 1BSS 0067 BS Blocos OGX Campos de Produção Unrisked Probability of Risked Risked 0 2 4 8 12 16 Km Basin Blocks Resources Resources Resources Basin D&M Report 2011 Geological Total 1 Total OGX Success Campos 7 9,350 44.10% 4,124 3,693 Campos 5,700* Santos 5 6,659 27.00% 1,796 1,688 Santos 1,688 Espírito Espírito 5 5,017 32.60% 1,634 817 817 Santo Santo Pará Pará 5 2,104 21.30% 447 447 447 Maranhão Maranhão Total 22 23,130 34.59% 8,001 6,645 Total 8,652 (1) Gross Prospective Resources * 3C + Delineation + Prospective Source: D&M Report and OGX presentations 4
- 5. OGX: Significant Demand Expected Base case order book of 48 offshore E&P units equivalent to US$ 30bn Expected Demand for Offshore Equipment (2011-2019) OGX Production Targets - kboepd Number of units 1,380 FPSO 19 CAGR: 70% TLWP 5 730 WHP 24 Total 48* Source: OGX * Considering 2009 D&M Report 20 Delivery Timeline 13 2011E 2015E 2019E 12 • Initial production expected to begin 2011 6 6 • 1st FPSO already contracted for a period of 20 years, at an 6 6 5 2 1 average day rate of US$ 263,000 1 2 4 3 5 1 • Expected CAGR of 70% between 2011 and 2019 1 5 4 5 2 1 3 1 2 1 1 1 1 1 2011E 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E * OSX2: to be delivered in mid 2013 (IPO: Dec. 2012) Source: OGX * OSX5: to be delivered in 1Q 2015 (IPO: Dec 2014) 5
- 6. Current Order Book with 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 1Q 2013 WHP-2 30 wells 400-450 2Q 2013 Total 4,685 - 4,885 * delivery at the shipyard (ex installation) 6
- 7. Pre-Salt Resources Pre-salt discoveries strongly contribute to increase in Brazilian resources of up to 100Bboe Pre-salt Resources 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) Pre-salt Reservoir Resources (Petrobras/CNPE/ANP) Production FPSO units, deepwater environment Development Required US$ 111bn 2009-2020E Capex US$ 33bn 2010-2014E Source: Petrobras (updated in June 2011) Espírito Petrobras Local Production Forecast Santo Basin (thousand bpd) Açu Super-Port 3,950 1,078 2,980 241 Campos 2,100 2,872 Basin 2,461 2,739 2,100 2010 2014 2020 Ex-Pre Salt Pre Salt Petrobras’ capex: US$ 111 billion Santos Basin Source: Petrobras (updated in June 2011) 7 Source: Petrobras (Company Presentation)
- 8. 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) Consolidated Potential Demand (number of E&P equipment units) OGX (FPSOs Only) Petrobras (FPSOs + 28 Rigs) 32 27 18 22 16 13 11 8 Existing Capacity 3 3 2011E 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E Note: Including already ordered equipment Source: Verax Capacity Estimates: Source OSX 8
- 9. 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 • Definition: minimum percentage of equipment and 86% 89% 84% services contracted by the operator that must be supplied 81% 77% by local companies 86% 79% 79% • Average 70% in the production development phase 48% 54% 74% 69% • Component of the bid for acquisition of E&P Blocks 27% 40% • 42% 39% Certification of each item by inspection companies 28% (guidelines set forth by Federal Government – MME) 25% • Subject to severe penalties 1st 2nd 3rd 4th 5th 6th 7th 8th (1) 9th 10th Exploration Phase Development Phase Source: ANP Note (1) 8th ANP bidding round auction is still under discussion 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 9
- 10. 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 MacLaren Committed Slots Site Area (km2) 1.6 0.5 0.5 0.4 0.1 Mauá Technology Partner Steel Processing Capacity 160 60 50 36 6 (Kton / year) Focus on Offshore Equipment Brasfels Logistics Labor Force Source: Verax “A construction slot in OSX’s shipyard is worth more than gold” 10
- 11. Strategic Partner: Hyundai Heavy Industries OSX Shipyard Unit under development in partnership with the largest shipbuilder in the world Rationale and Overview Why Hyundai? Efficiency Comparison • 10% equity investment in OSX Shipyard • Proven track record: founded in 1972 • Significant upside potential for OSX • Largest shipbuilder in the world: 10% • State-of-the-art technology – HHI Offshore division processes market share (2010) 550,000 tons of steel/year in • Transfer of know-how and training • Delivered more than 1,600 vessels to 2,500,000 m² more than 250 ship owners in 47 • Accelerate learning curve: distill 38 years – OSX should process in its initial countries to date of experience into 2 years • One of the leaders in offshore equipment stage 180,000 tons of steel/year and integrate 220,000 tons/year in • Technology and services contract for fabrication in the world, handling over 100 2,000,000 m² shipyard design and transfer of know-how turnkey EPIC projects for more than 30 oil for at least 10 years and gas majors • Efficiency gains could drive potential • Delivered FPSO’s and fixed platforms to processing capacity expansion clients such as ExxonMobil, Petrobras, • OSX’s goal is to reach Asian productivity Shell, Chevron and BP levels after two years of operation 11
- 12. Açu Industrial District A new cluster for heavy industry 12 12
- 13. 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 13
- 14. 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 14
- 15. Product Portfolio Description Main Systems for Standardization Target OSX Flex Engineering • Floating Production Storage and Offloading Conceived to process oils of different FPSO characteristics (different API grade, • Hull: conversion of oil tanker or new- gas/oil ratio, water/oil ratio build Sister Vessels • Tension-Leg Wellhead Platform Reduction in project time and TLWP conversion costs • Suited for deepwater environments Accelerates the learning curve in the operation and maintenance • Wellhead Platform or fixed production WHP’s Standardization WHP platforms in general Optimization of assembly and • Suited for shallow-water environments fabrication Designed to operate in a range of water depths • Drilling units for exploration Drillships Equipment Standardization • Heavily demanded in ultra-deepwater Key systems Supplied with increased security and speed systems in the long run • Navigation transportation unit Pre negotiated contracts with minimum Tankers • Demand for long course navigation units, demand guaranteed cabotage, relievers and production platforms Inventory and maintenance optimization 15
- 16. ITN – Naval Technology Institute Initial strategic partnerships: Firjan (Rio de Janeiro State Industrial Federation) and SENAI (National Institute of Industrial Learning) – Commercial Contract executed in 07/01/2011 Objectives of the 1st Phase of the Program: Absorption and application of technology (agreement with Hyundai) Qualification of up to 3,100 technical personnel in 23 functions (welders, assemblers, electrics and mechanicals, among others) through the end of 2012 Utilization of facilities and instructors from SENAI Scholarships that provide financial assistance, food and transportation Beginning of classes scheduled for 4Q11 Estimated budget: R$ 12.7 million 16
- 17. ITN – Naval Technology Institute Objectives of the 2nd Phase of the Program: Preparation of a labor force with superior skill and know-how Development of innovative engineering projects Supplier mobilization: new equipment and materials New partnerships with reference institutions: Companies and Universities Approach: FASE 1 – PERSONNEL GRADUATION Shipbuilding Operation & Maintenance of naval units FASE 2 – KNOWLEDGE, DEDICATION TECHNOLOGY & INOVATION TIMELINE 17
- 18. Next Milestones Arrival of FPSO OSX-1 in Brazil and first oil Conclusion of financing for FPSO OSX-2 Financing for FPSO OSX-3, WHP-1 and WHP-2 Beginning of Construction WHP-1 and WHP-2 Contract for engineering of FPSOs OSX-4 and OSX-5 OGX orders Orders from other clients 18