Osx project update english
Transcript of Osx project update english
PROJECT UPDATE
ORGANIZATIONAL STRUCTURE
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EBX FREE FLOAT
OSX
OSX SERVICES OSX LEASING
OSX SHIPBUILDING
UNIT
Integrated offshore E&P equipment and services provider HYUNDAI
78.8% 21.2%
Holding 10%
90% 100% 100%
OSX HIGHLIGHTS
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Attractive Market Conditions in Brazil
Local Content Requirement
Strong Demand from OGX
Strategic Partnership with Hyundai
Incentivized and Experienced Management Team
More than 30 years experience, on average, in the E&P sector US$ 30bn in projects and more than 50,000 people under management
Approximately 70% of E&P industry capex supplied locally Key for Brazil’s long-term social and economic development (285,000 jobs in 5
years)
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
Training (ITN)
ITN –Institute of Naval Technology , partnerships with technical institutions and universities
Absorption and application of Korean technology Qualification of 3.100 technical personnel until beginning of 2013
POTENTIAL DEMAND
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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)
2011E 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E
PETROBRAS (FPSOs + 28 Rigs)
OGX (FPSOs Only)
Existing Capacity
Source: Verax
3 3
22
8
32
18
27
13
16
11
Note: Includes equipment which has already been ordered Capacity Estimates: Source OSX
LOCAL CONTENT: RATIONALE AND EVOLUTION Represents a social & economic development strategy. Has increased significantly in recent ANP bidding rounds.
Local Content Requirement
■ Definition: minimum percentage of equipment and services contracted by the operator that must be supplied by local companies
■ Average of 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
Local Content Rationale
■ Boost local oil & gas equipment and services industry
■ Incentivize local technology development
■ Substantially increase employment and income
Local Content Evolution
Source: ANP Note (1) 8th ANP bidding round auction is still under discussion
25%
42%
28%
39%
79% 86%
74% 69%
79%
27%
48%
40%
54%
86% 81%
77%
84%
1st 2nd 3rd 4th 5th 6th 7th 8th (1) 9th 10th
Exploration Phase
Development Phase
Notable Companies Committed to Local
Content
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BRAZILIAN SHIPYARDS
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Local shipyards are not prepared to serve expected offshore E&P equipment demand
Main Shipbuilders in Brazil
EAS ERG Brasfels Mauá Mac
Laren
1,6 0,5 0,5 0,4 0,1
160 60 50 36 6
Current Conditions of Brazilian Shipyards
Mac Laren
Brasfels
Mauá
“A construction slot in OSX’s shipyard is worth more than gold”
Committed Slots
Site Area (km2)
Technology Partner
Steel Processing Capacity (Kton / year)
Focus on Offshore Equipment
Logistics
Labor Force
Source: Verax
SHIPBUILDING
AÇU SUPERPORT
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A One-Stop Shop for the Oil & Gas Industry
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) 10 10
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
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
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UCN AÇU: SHIPBUILDING UNIT SCHEDULE
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PACKAGES PROCUREMENT MOBILIZATION
REMOVAL OF VEGETATION 2Q11 2Q11
PREPARATION OF THE TERRAIN 3Q11 3Q11
NORTH QUAY AND JACKET'S AREA 1Q12 (LOI) 1Q12
DRY DOCK 1Q12 (LOI) 1Q12
SOUTH QUAY AND RESPECTIVE RETRO AREA 1Q12 (LOI) 1Q12
INDUSTRIAL BUILDINGS 3Q11 4Q11
UTILITIES AND INFRASTRUCTURE 3Q11 3Q11
ADMNISTRATIVE BUILDINGS 2Q12 2Q12
AUXILIARY BUILDINGS 2Q12 2Q12
ELECTROMECHANICAL ASSEMBLY 2Q12 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
P
P
P
P
P
P
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
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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
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2011 2012 2014 2013
63,6% 20,1% 1,9% 14,4%
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 $219
Capex distribution per year/activity
UCN AÇU:
EVOLUTION OF THE WORKS
UCN AÇU: BREAKWATER
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Breakwater: used to avoid the silting of the canal and protects the entry and exit of vessels
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The breakwater is composed of 43 large blocks each 67m long, 24m wide and 24m deep
UCN AÇU: AERIAL VIEW
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UCN AÇU: CONSTRUCTION OF THE CANAL
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UCN AÇU: CONSTRUCTION OF THE CANAL
125 m
1370 m
Beginning of construction of the breakers to protect the approach canal to the
Açu Shipbuilding Unit
Distance escavated
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UCN AÇU: EARTHWORKS & BUILDINGS
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Administrative Building Plots to be used by contractors
Water Treatment Plant Plots to be used by contractors
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UCN AÇU: EARTHWORKS & BUILDINGS
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1. Medical Centre 2. Administrative Building
3. Canteen
Concrete factory
1
3 2
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UCN AÇU: BUILDINGS
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Canteen
Effluent Treatment Plant
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UCN AÇU: BUILDINGS
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Administrative Building
FPSO OSX-1 ORDER BOOK
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* Delivery at the shipyard (ex-installation) • FPSO: Floating Production Storage Offloading • WHP: Wellhead Platform • PLSV: Pipe Laying Support Vessel • MR: Medium Range Tanker
CURRENT ORDER BOOK
UNIT CAPACITYESTIMATED PRICE
(US$ MM)DELIVERY*
CONSTRUCTION
LOCATION
OSX LEASING
& SERVICES
FPSO OSX-1 80K bopd 610 OK SAMSUNG, KOREA
FPSO OSX-2 100K bopd 775 2Q 2013 KEPPEL, SINGAPORE
FPSO OSX-3 100K bopd 800 3Q 2013 JURONG, SINGAPORE
FPSO OSX-4 100K bopd 850-900 2Q 2014 OSX, BRAZIL
FPSO OSX-5 100K bopd 850-900 4Q 2014 OSX, BRAZIL
WHP-1 30 wells 400-450 3Q 2013 TECHINT, BRAZIL
WHP-2 30 wells 400-450 4Q 2013 TECHINT, BRAZIL
PLSV - SAPURA NA 263 4Q 2014 OSX, BRAZIL
11 MR - KINGFISH NA 732 2Q 2015- 4Q 2017 OSX, BRAZIL
P
P
P
P
P
P
P
FPSO OSX-1
FIRST OIL FOR OGX: 18H 39M 50S
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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
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FPSO OSX-2 / WHP-1
OSX-2 / WHP-1 SYSTEM
OSX-2
Construction Contract
■ EPCI contract signed with SBM
■ Acquisition of VLCC – accomplished
Long term debt commitment
■ Facility agreement: US$ 850 million(12 years, LIBOR +4,41% p.a.)
■ ING, Itaú-BBA and Santander (leaders), HSBC, Citibank, ABN
Amro Bank, Banco do Brasil, NIBC and DnB Nor
WHP-1
Construction Contract
■ 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
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FPSO OSX-3 / WHP- 2
OSX-3
Long term debt commitment
■ 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
WHP-2
Construction Contract
■ 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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Construction Contract
■ Acquisition of VLCC - accomplished
■ EPCI contract signed with MODEC
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
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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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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
PLSV - PIPE-LAYING SUPPORT VESSEL
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Used for laying and installing flexible pipelines on the seabed
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
11 MR - MEDIUM RANGE TANKERS
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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 beginning of 2013
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
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Curriculum planning
Adapting the necessary facilities
Classes scheduled to commence in 1st half 2012
Organization and production of teaching material
ITN- INSTITUTE OF NAVAL TECHNOLOGY
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
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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
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