Osx project update english
- 2. ORGANIZATIONAL STRUCTURE EBX FREE FLOAT 78.8% 21.2% Integrated offshore E&P equipment HYUNDAI OSX and services provider 10% Holding 90% 100% 100% OSX SHIPBUILDING OSX LEASING OSX SERVICES UNIT 2
- 3. OSX HIGHLIGHTS Priority Rights between OSX and OGX Strong Demand Order book of 48 offshore E&P units, equivalent to a US$ 30bn investment from OGX Upside potential with expansion of OGX’s exploratory campaign Attractive Market Expected oil and gas resources to increase to 100 Bboe, with announced Conditions in investments of US$ 140bn plus Brazil Underserved domestic equipment & services market Approximately 70% of E&P industry capex supplied locally Local Content Key for Brazil’s long-term social and economic development (285,000 jobs in 5 Requirement 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 –Institute of Naval Technology , partnerships with technical institutions and universities Training (ITN) Absorption and application of Korean technology Qualification of 3.100 technical personnel until beginning of 2013 Incentivized and Experienced More than 30 years experience, on average, in the E&P sector Management US$ 30bn in projects and more than 50,000 people under management Team 3
- 4. POTENTIAL DEMAND 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) 32 PETROBRAS (FPSOs + 28 Rigs) OGX (FPSOs Only) 27 22 18 16 13 11 8 Existing Capacity 3 3 2011E 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E Note: Includes equipment which has already been ordered Source: Verax Capacity Estimates: Source OSX 4
- 5. LOCAL CONTENT: RATIONALE AND EVOLUTION Represents a social & economic development strategy. Has increased significantly in recent ANP bidding rounds. Local Content Requirement Local Content Evolution Exploration Phase ■ Definition: minimum percentage of equipment and 86% Development Phase 84% services contracted by the operator that must be 81% 77% supplied by local companies 86% 79% 79% 54% 74% ■ Average of 70% in the production development phase 69% 48% 40% ■ Component of the bid for acquisition of E&P Blocks 27% 42% 39% ■ Certification of each item by inspection companies 28% 25% (guidelines set forth by Federal Government – MME) 1st 2nd 3rd 4th 5th 6th 7th 8th (1) 9th 10th ■ Subject to severe penalties Source: ANP Note (1) 8th ANP bidding round auction is still under discussion Local Content Rationale Notable Companies Committed to Local ■ Boost local oil & gas equipment and services industry Content ■ Incentivize local technology development ■ Substantially increase employment and income 5
- 6. BRAZILIAN SHIPYARDS Local shipyards are not prepared to serve expected offshore E&P equipment demand Main Shipbuilders in Brazil Current Conditions of Brazilian Shipyards Mac Laren EAS ERG Brasfels Mauá Mac Laren Committed Slots Mauá Site Area (km2) 1,6 0,5 0,5 0,4 0,1 Technology Partner Steel Processing Capacity 160 60 50 36 6 Brasfels (Kton / year) Focus on Offshore Equipment Logistics Labor Force “A construction slot in OSX’s shipyard is worth more than gold” 6 Source: Verax
- 7. SHIPBUILDING
- 8. AÇU SUPERPORT A One-Stop Shop for the Oil & Gas Industry 8
- 9. AÇU INDUSTRIAL COMPLEX A New Cluster for the Offshore and Heavy Industry GE 90 km² Complexo Industrial (1,5xx larger than ilha de Manhattan) 90 km² Industrial Complex (1.5 maior que a Manhattan Island)
- 10. UCN AÇU: LAYOUT Conceptual design approved by Hyundai Heavy Industries 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) 10 90 km² Complexo Industrial (1,5x maior que a ilha de Manhattan) 10
- 11. 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 11
- 12. 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 1Q12 (LOI) P 1Q12 P DRY DOCK 1Q12 (LOI) P 1Q12 P SOUTH QUAY AND RESPECTIVE RETRO AREA 1Q12 (LOI) P 1Q12 P INDUSTRIAL BUILDINGS 3Q11 P 4Q11 P UTILITIES AND INFRASTRUCTURE 3Q11 P 3Q11 P ADMNISTRATIVE BUILDINGS 2Q12 2Q12 AUXILIARY BUILDINGS 2Q12 2Q12 ELECTROMECHANICAL ASSEMBLY 2Q12 2Q12 SUPERVISION SUPPORT 2Q11 P 2Q11 P CONSTRUCTION SITE 3Q11 P 3Q11 P BREAKWATER 1Q11 P 1Q11 P DREDGING 3Q11 P 3Q11 P 12
- 13. 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 13
- 14. UCN AÇU: FINANCING Fundo da Marinha Mercante (Merchant Marine Fund) Capex distribution per year/activity 14,4% 63,6% 20,1% 1,9% Credit facility: 80% CAPEX 2011 2012 2013 2014 Total tenor ranging from 18 to 20 years DESCRIPTION OSX (US$) LLX (US$) with a grace period of up to 3 years and DREDGING AND ENGINEERING 93 90 interest rates that vary between US$ + 2% to BREAK WATER 135 129 US$ + 4% per annum QUAY 262 - BUILDINGS 339 - Lending Agents: BNDES, Caixa Econômica DRY DOCK 133 - Federal, Banco do Brasil, BNB and Banco da ROADS AND PAVING 146 - Amazônia EQUIPMENT, ENGINEERING AND ENVIRONMENT 487 - OTHERS 119 - TOTAL $1.714 $219 TOTAL OF US$ 1,933 MM 14
- 15. UCN AÇU: EVOLUTION OF THE WORKS
- 16. UCN AÇU: BREAKWATER Breakwater: used to avoid the silting of the canal The breakwater is composed of 43 large blocks each and protects the entry and exit of vessels 67m long, 24m wide and 24m deep 16 16
- 17. UCN AÇU: AERIAL VIEW 17
- 18. UCN AÇU: CONSTRUCTION OF THE CANAL 18 18
- 19. UCN AÇU: CONSTRUCTION OF THE CANAL Distance escavated 1370 m 125 m Beginning of construction of the breakers to protect the approach canal to the Açu Shipbuilding Unit 19 19
- 20. UCN AÇU: EARTHWORKS & BUILDINGS Water Treatment Plant Plots to be used by contractors Administrative Building Plots to be used by contractors 20 20
- 21. UCN AÇU: EARTHWORKS & BUILDINGS 1 Concrete factory 2 3 1. Medical Centre 2. Administrative Building 3. Canteen 21 21
- 22. UCN AÇU: BUILDINGS Canteen Effluent Treatment Plant 22 22
- 23. UCN AÇU: BUILDINGS Administrative Building 23
- 24. ORDER BOOK FPSO OSX-1
- 25. CURRENT ORDER BOOK ESTIMATED PRICE CONSTRUCTION OSX LEASING UNIT CAPACITY DELIVERY* (US$ MM) LOCATION & SERVICES FPSO OSX-1 80K bopd 610 OK SAMSUNG, KOREA P FPSO OSX-2 100K bopd 775 2Q 2013 KEPPEL, SINGAPORE P FPSO OSX-3 100K bopd 800 3Q 2013 JURONG, SINGAPORE P FPSO OSX-4 100K bopd 850-900 2Q 2014 OSX, BRAZIL P FPSO OSX-5 100K bopd 850-900 4Q 2014 OSX, BRAZIL P WHP-1 30 wells 400-450 3Q 2013 TECHINT, BRAZIL P WHP-2 30 wells 400-450 4Q 2013 TECHINT, BRAZIL P PLSV - SAPURA NA 263 4Q 2014 OSX, BRAZIL 11 MR - KINGFISH NA 732 2Q 2015- 4Q 2017 OSX, BRAZIL * Delivery at the shipyard (ex-installation) • FPSO: Floating Production Storage Offloading • WHP: Wellhead Platform • PLSV: Pipe Laying Support Vessel • MR: Medium Range Tanker 25
- 26. FPSO OSX-1
- 27. FIRST OIL FOR OGX: 18H 39M 50S 31ST January 2012 27 27
- 28. FPSO OSX-1: CUSTOMIZATION 28
- 29. 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% 29
- 30. FPSO OSX-2 / WHP-1
- 31. 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 ■ Facility agreement: US$ 850 million(12 years, LIBOR +4,41% p.a.) ■ LOI for Drilling Package signed with TTS ■ ING, Itaú-BBA and Santander (leaders), HSBC, Citibank, ABN Amro Bank, Banco do Brasil, NIBC and DnB Nor 31
- 32. FPSO OSX-3 / WHP- 2
- 33. 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 ■ Acquisition of VLCC - accomplished ■ Signing of LOI with Techint – 1Q11 ■ EPCI contract signed with MODEC ■ Start of Engineering – 1Q11 Long term debt commitment ■ Contract signed with Techint ■ Financing: Senior Secured Bonds US$ 500 mm, maturity 03/2015 at an interest rate of 9.25% pa, payable quarterly. ■ Global Coordinator, Joint Lead Manager and Bookrunner: Pareto Securities and Joint Lead Manager and Bookrunner: DNB Markets 33
- 34. FPSO OSX-4
- 35. MILESTONES ACHIEVED AND NEXT STEPS VLCC sister hulls acquired by OSX in Nov. 2010: US$ 27 million each FPSO OSXFLEX concept contracted with CKE Milestone Date Consortium (Chemtech, Kromav and Exactum) Specifications for hull 1st Q2012 conversion Close-up Survey of the hulls performed by ShipScan End of hull conversion 4th Q2012 and monitored by Bureau Veritas Arrival of hull at UCN slot 1 2nd Q2013 Preparation Stage: engineering project for conversion of the hulls Delivery by the shipyard 2nd Q2014 Integration UCN Açu : 2Q2013 marking the start-up of UCN Açu’s activities Delivery at UCN Açu in 2Q2014 35
- 36. FPSO OSX-5
- 37. MILESTONES ACHIEVED AND NEXT STEPS VLCC sister hulls acquired by OSX in Nov. 2010: US$ 27 million each FPSO OSXFLEX concept contracted with CKE Milestones Date Consortium (Chemtech, Kromav and Exactum) Specifications for hull repair 2nd Q2012 Close-up Survey of the hulls performed by ShipScan End of hull conversion 2nd Q2013 and monitored by Bureau Veritas Arrival of hull at UCN slot 2 3rd Q2013 Preparation Stage: engineering project for conversion of the hulls Delivery by the shipyard 4th Q2014 Integration UCN Açu : 3Q2013 marking the start-up of UCN Açu’s activities Delivery at UCN Açu in 4Q2014 37
- 38. PLSV - PIPE-LAYING SUPPORT VESSEL Used for laying and installing flexible pipelines on the seabed Milestones: Contract signed on 24/2/2012 Contract price: US$ 263 million Delivery date: December 2014 Main characteristics: Length: 135 meters Breadth: 24 meters Depth: 10 meters Flexible lines traction capacity : 300 tonnes Flexible lines capacity: 2.500 tonnes 38
- 39. 11 MR - MEDIUM RANGE TANKERS Milestones: Contract signed on 9/03/2012 Contract price: US$ 732 million Delivery date of last vessel: December 2017 Main characteristics: Total length: 183 meters Breadth: 32.20 meters Depth: 18 meters Deadweight : 47.000 tonnes 39
- 40. PARTNERSHIP BRAZIL / KOREA ITN: INSTITUTE OF NAVAL TECHNOLOGY
- 41. ITN- INSTITUTE OF NAVAL TECHNOLOGY Objectives Qualification of up to 3,100 personnel in 23 functions by the beginning of 2013 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 41
- 42. ITN- INSTITUTE OF NAVAL TECHNOLOGY 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 1st half 2012 Organization and production of teaching material 42
- 43. NEXT MILESTONES Financing: WHP-1 and WHP-2 (BNDES / GIEK) Financing: OSX-4 and OSX-5 Contract shipyard to convert the OSX-4 and OSX-5 hull’s Shipyard financing contract (Merchant Marine Fund) New orders from OGX New orders from third parties 43
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- 45. RI@OSX.COM.BR +55 21 2555 6914