Osx project update eng_ february

PROJECT UPDATE

Rio de Janeiro | February 2012 |

FPSO OSX-1 SHIPBUILDING 2

AÇU INDUSTRIAL COMPLEX

A New Cluster for the Offshore and Heavy Industry

90 km² Complexo Industrial (1,5x maior que a ilha de Manhattan)

GE

90 km² Industrial Complex (1.5 x larger than Manhattan Island)

UCN AÇU: LAYOUT

90 km² Complexo Industrial (1,5x maior que a ilha de Manhattan)

Administrative buildings with LEED

Certification (US Green Building Council)

Dry dock and ETS

Quays

Jacket assembly area

Administrative buildings

ETA

Green Curtain

Module construction area

Platform construction area

Electricity Substation 345 kV – 13.8 kV

FPSO

Industrial unit

4

UCN AÇU: LICENSING SCHEDULE

Oct-10 Jan-11 Jun-11 Jul-11 Feb-11

Public Hearings

Preliminary License Issuance

Installation License

Issuance Beginning of Construction

EIA/RIMA Filling

P P P P P

5

UCN AÇU: SHIPBUILDING UNIT SCHEDULE

PACKAGES PROCUREMENT MOBILIZATION

REMOVAL OF VEGETATION 2Q11 2Q11

PREPARATION OF THE TERRAIN 3Q11 3Q11

NORTH QUAY AND JACKET'S AREA 1Q12 1Q12

DRY DOCK 1Q12 1Q12

SOUTH QUAY AND RESPECTIVE RETRO AREA 1Q12 1Q12

INDUSTRIAL BUILDINGS 3Q11 4Q11

UTILITIES AND INFRASTRUCTURE 3Q11 3Q11

ADMNISTRATIVE BUILDINGS (LEED) 1Q12 1Q12

AUXILIARY BUILDINGS (NON-LEED) 1Q12 1Q12

ELECTROMECHANICAL ASSEMBLY 1Q12 2Q12

SUPERVISION SUPPORT 2Q11 2Q11

CONSTRUCTION SITE 3Q11 3Q11

BREAKWATER 1Q11 1Q11

DREDGING 3Q11 3Q11

P

P P

P P

P P

P P

P P

P P

P P

P

6

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 - 3rd QUARTER -

SLOT 4 FOR FPSO INTEGRATION - 4th QUARTER -

SLOT 5 AND 6 FOR FPSO INTEGRATION - - 2nd QUARTER

COMPLETION OF CONSTRUCTION OF UCN - - 2nd QUARTER

7

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 between US$ + 2% to US$ + 4% per annum

Lending Agents: BNDES, Caixa Econômica Federal, Banco do Brasil, BNB

and Banco da Amazônia

8

UCN AÇU: FINANCING

2011 2012 2014 2013

63,6% 20,1% 1,9% 14,4%

Capex distribution per year/activity

TOTAL OF US$ 1,933 MM

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 $1.714 $219

9

UCN AÇU:

EVOLUTION OF THE WORKS

UCN AÇU: BREAKWATER

11

UCN AÇU: AERIAL VIEW

12

UCN AÇU: CONSTRUCTION OF THE CANAL

13

UCN AÇU: EARTHWORKS

14

UCN AÇU: BUILDINGS

Medical Center

Administrative Building

Canteen

15

FPSO OSX-1 LEASING

& SERVICES

CURRENT ORDER BOOK STATUS: OGX

* delivery at the shipyard (ex installation)

EQUIPMENT CAPACITYESTIMATED CAPEX

(US$ MM)DELIVERY*

FPSO OSX-1 80K bopd 610 3Q 2011



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

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FPSO OSX-1:

DESTINATION WAIMEA

FIRST OIL FOR OGX: 18H 39M 50S

19 19

31ST January 2012

FPSO OSX-1: CUSTOMIZATION

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Age

FPSO OSX-1: CREW

Total of 89 crew members

Years of Experience

14%

26%

28%

28%

4%

20 to 30 years

30 to 40 years

40 to 50 years

50 to 60 years

Greater than or equal

to 60 years

49%

32%

19%

Less than 20 years

20 to 30 years

Greater than or equal

to 30 years

21

OGX PRODUCTION MODEL

WHP FPSO

OSX-2 / WHP-1 SYSTEM

OSX-2

Construction Contract

■ EPCI contract signed with SBM

■ Acquisition of VLCC – accomplished

Long term debt commitment

■ 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

WHP-1


■ Signing of LOI with Techint – 1Q11

■ Start of Engineering – 1Q11

■ Contract signed with Techint

■ LOI for Drilling Package signed with TTS

Milestone Date

Arrival of hull at Keppel shipyard

(Singapore) 3rd Quarter 2011

P&IDs approved for construction 2nd Quarter 2011

FPSO departure from yard 2nd Quarter 2013

Milestone Date

Start of construction and assembly 4th Quarter 2011

Load Out of WHP-1 3rd Quarter 2013

23

OSX-3


■ Acquisition of VLCC - accomplished

■ EPCI contract signed with MODEC

Long term debt commitment

■ Financing: 1st half 2012

WHP-2


■ Signing of LOI with Techint – 1Q11

■ Start of Engineering – 1Q11

■ Contract signed with Techint

OSX-3 / WHP-2 SYSTEM

Milestone Date

Arrival of hull at conversion shipyard 4th Quarter 2011

P&IDs approved for construction 1st Quarter 2012

FPSO departure from yard 3rd Quarter 2013

Milestone Date

Start of construction and assembly 4th Quarter 2011

Load Out of WHP-2 4th Quarter 2013

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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

Preparation Stage: engineering project for

conversion of the hulls

Integration UCN Açu : 2Q2013 marking the start-up

of UCN Açu’s activities

Delivery at UCN Açu in 2Q2014

Milestone Date

Specifications for hull

conversion1st Q2012

End of hull conversion 4th Q2012

Arrival of hull at UCN slot 1 2nd Q2013

Delivery by the shipyard 2nd Q2014

26

FPSO OSX-5

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

Preparation Stage: engineering project for

conversion of the hulls

Integration UCN Açu : 3Q2013 marking the start-up

of UCN Açu’s activities

Delivery at UCN Açu in 4Q2014

Milestones Date

Specifications for hull repair 2nd Q2012

End of hull conversion 2nd Q2013

Arrival of hull at UCN slot 2 3rd Q2013

Delivery by the shipyard 4th Q2014

MILESTONES ACHIEVED AND NEXT STEPS

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UCN – OCCUPATION OF SLOTS BY FPSOs

* Subject to new orders from OGX

Slot 1

Slot 2

Slot 4

Slot 3

Slot 5

Slot 6

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: 3Q13 OSX 6: 3Q13 OSX 6: 4Q14*

Slot 4: 4Q13 OSX 7: 4Q13 OSX 7: 4Q14*

Slot 5: 2Q14 OSX 8: 2Q14 OSX 8: 2Q15*

Slot 6: 2Q14 OSX 9: 2Q14 OSX 9: 3Q15*

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PROJECT

ACCELERATORS

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

Water injection

Cargo handling

Energy generation

Gas compression

Offloading System

Supervisory System

Anchoring and Turret System

Water harvesting

Compressed air

Fire Fighting System

Tubing and Accessories

Load pump

Ballast pumps

Key Systems Sept/11 Other Systems Feb/11

31

PROJECT ACCELERATORS

OSX Flex Engineering

Modules can be removed without damaging the project

Capable of treating a range of oil specifications

Potential gain: 5 months in the engineering phase

Advantages

Contract signed with Chemtech-Kromav-Exactum

First OSXflex units: OSX-4 and OSX-5

Status

MIN

API RGO LDA

MAX

MIN

MAX

MIN MAX

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ITN:

INSTITUTE

OF NAVAL

TECHNOLOGY

PARTNERSHIP BRAZIL / KOREA

ITN- INSTITUTE OF NAVAL TECHNOLOGY

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

Barra. Macaé in the future

Scholarships providing financial assistance, food and

transportation

Estimated budget: R$ 12.7 million

SENAI Campos

SENAI Macaé

SENAI São João da Barra

Objectives

34

Curriculum planning

Adapting the necessary facilities

Classes scheduled to commence in 1st quarter 2012

Organization and production of teaching material

Phase I: Qualification and Training


CityApprox.

distanceWork force Population

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

35

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

Phase II: Training at UCN Açu


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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


37

NEXT MILESTONES

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

38

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+55 21 2555 6914

[email protected]

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Osx project update eng_ february