07 04-2011-project-update

Project UpdateJuly 2011

Açu Shipyard – Licensing

• Term of Reference

• EIA filling

• Public Hearing

• Preliminary License

• Installation License

• Beginning of Construction (July)

1

Açu Shipyard – Industrial District

A new cluster for Heavy Industry

2

Açu Shipyard – Setup

Green curtain

Platform construction area

Modules construction areaDrydock and

effluent station treatment

Platform assembly area

Water treatment station

Quay

FPSO Administrative buildings

Industrial unit

Administrative buildings with LEED Certification

(US Green Building Council)

Electric Substation 345 kV – 13.8 kV

3

Açu Shipyard – Advantages

1. Welding economies: 18m steel plate results in 56% less welding

• US$ 3.5 million savings and 28 days reduction in construction / FPSO • US$ 1.9 million savings and 24 days reduction in construction / WHP

20M 20M

Biguaçu Açu

2. Energy Savings: 30% reduction and US$ 4 million in annual savings

Welding length: (18m x 8point) + 20m = 164m

2.4M 2.4M 2.4M 2.4M 2.4M 2.4M 2.4M 2.4M

18M

9M

9M

1 2 3 4 5 6 7 8 9

4M 4M 4M 4M 4M

18M1 2 3 4 5

WELDING LENGTH: (18M * 9POINT) + 20M = 182 M Welding lenght: (18m x 4point) =72m

4

Açu Shipyard – Advantages

3. Optimal Weather conditions: Less than 30% of rainy days per year

4. Better soil: Sandy soil requires lighter foundations

5. 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)

5

6. Proximity to Campos Basin: ( ≈ 150Km)

FPSO / WHP travels to Campos Basin in half a day

Savings of US$ 4,0 million as compared to a site in Singapore

Açu Shipyard – Capex

Preliminary Budget – US$ (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

6

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

Merchant Marine Fund ≈ US$ 1.630 MM

EQUIPMENT CAPACITYESTIMATED CAPEX

US$ MMDELIVERY**

FPSO OSX1 80K bopd 610 3Q 2011

FPSO OSX2 100K bopd 775 2Q 2013

FPSO OSX3 100K bopd 800-850 3Q 2013

FPSO OSX4 100K bopd 850-900 2Q 2014

Current Order Book – OGX

7

FPSO OSX4 100K bopd 850-900 2Q 2014

FPSO OSX5 100K bopd 850-900 4Q 2014

WHP1 *30 wells 400-450 1Q 2013

WHP2 *30 wells 400-450 2Q 2013

Total 4,685 - 4,935

*18 wells for production,10 wells for water injection and 2 wells for gas injection

**delivery at the shipyard (ex installation)

FPSO OSX 1

8

FPSO OSX 1 – Customization

M350 New

M260 Mod.

M320 Mod.

M230 New

MODIFICATION WORK

NEW INSTALLATION

N160 Mod.

M200 New

M290 Mod.

M380 New

M400 Mod.

Central Pipe Rack Mod.

M430 Mod.

M220 Mod.

F110 Mod.

N130 Mod.

M250 New

M310 New

M280 Mod.

W140 Mod.

Hull / Engine Room Mod.

9

FPSO OSX 1 – Project Progress

10


11

• FPSO– MECHANICAL COMPLETION AND COMISSIONING: 30TH OF JULY

• TURRET

– INSTAND-BY AT INDONESIA.

• COMPONENTS OF THE MOORING SYSTEM

– STORED IN BRAZIL.

70%

75%

80%

85%

90%

95%

100%

FPSO OSX 1

Delivery Progress & Timeline

Purchase

Delivery in

Singapore

First Oil


PLANNEDPLANNED

ACTUALACTUAL

83.38%

80.88%

FEB/11

84.81%

84.47%

MAR/11

86.90%

86.96%

APR/11

90.38%

89.90%

MAY/11

12

60%

65%

Planned Actual

Singapore

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Percentage of Workers Hired

FPSO OSX 1 – Hire of Personnel On-Track

0%

10%

% Planned % Actual

PLANNEDPLANNED

ACTUALACTUAL

50

46

FEB/11

58

61

MAR/11

79

73

APR/11

79

74

MAY/11

13

No. of employees

FPSO OSX 1 – Personnel Experience

13%

25%

29%

4%

Age

20 to 30 years

30 to 40 years

40 to 50 years50%

21%

Less than 20 years

20 to 30 years

ExperienceTime

14

25%

29%

50 to 60 years

Greater than or equal to

60 years

50%

29%

Greater than or equal to

30 years

OSX 2 – WHP 1 System

15


WHP 1 OSX 2

16

Expected Timeline

GTD

RFP

Delivery at shipyard*

Status

2Q13

Expected Timeline

GTD

RFP


Status

1Q13

OSX 2 WHP 1


17

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

* ex-installation


• EPCIC (Engineering, Procurement, Construction, Installation and Commissioning) contract executed with Techint

Drilling Package

• Ongoing tender

• Initial proposals received on December 8th, 2010 from AKER, NOV, TTS and SEAWELL

* ex-installation


18


WHP 2 OSX 3

19

Expected Timeline

GTD

RFP


Status

3Q13

Expected Timeline

GTD

RFP


Status

2Q13

OSX 3 WHP 2


20


• EPCIC (Engineering, Procurement, Construction, Installation and Commissioning) in negotiation with Modec

* ex-installation

Contrato de Construção

• EPCIC (Engineering, Procurement, Construction, Installation and Commissioning) contract executed with Techint

Drilling Package

• Ongoing tender

• Initial proposals received on December 8th, 2010 from AKER, NOV, TTS and SEAWELL

* ex-installation

21

FPSOs OSX 4& OSX 5

Gemini Star Suhail Star

FPSOs OSX 4 & OSX 5

22

• Two sister VLCC´s (Very Large Crude Oil Carriers) purchased inNovember 2010

• Purchase price: US$ 27 MM each

• VLCC Gemini Star received on January 13th, 2011 and VLCCSuhail Star received on February 22nd, 2011

• Purchased from Vela International Marine Limited (subsidiary ofSaudi Aramco)

• Engineering for conversion and integration under biddingprocess

• Delivery ex-installation scheduled for 2Q14 and 4Q14,respectively

Business

07 04-2011-project-update