ogx management presentation v6
DESCRIPTION
TRANSCRIPT
MANAGEMENT PRESENTATION
Rio de Janeiro | January 2012 |
AGENDA 123456
OGX Overview
OGX Portfolio
OGX Operations
Execution on Track
Financial Overview
Appendix
OGX OVERVIEW
1
OGX is among the 15 largest pure E&P companies globally with a market cap of approximately US$25 billion, and is the 3rd most traded stock in Latin America
World class E&P portfolio with 10.8 billion boe of potential resources, mostly in shallow waters and onshore (low cost and off-the-shelf technology)
Multi-billion barrel discoveries and overall success rate exceeding 90% with high productivity reservoirs amongst the best in Brazil
Solid cash position allows OGX to conduct the largest and most successful private sector exploratory campaign in Brazil and to support production development (more than 70 wells spud since the beginning of its exploratory campaign in Aug. 2009)
Highly successful and experienced management team, combining unique intellectual capital and superior execution skills
Proven execution capability (from concept to oil in an unprecedented timing) with fully established operations comprising more than 6,000 people
Brazil’s historical under-exploration underpins massive growth opportunities for OGX
OGX OVERVIEW
4
OGX Main Accomplishments
OGX MAIN ACCOMPLISHMENTS
5
PROVEN EXECUTION CAPABILITY (FROM CONCEPT TO FIRST OIL IN UNPRECEDENTED TIMING) WITH FULLY ESTABLISHED OPERATIONS COMPRISING MORE THAN 6,000 PEOPLE
OGX Creation
US$1.3 bnraised through an equity Private Placement
21 blocks acquired during the 9th Bidding Round
Jul/07Nov/07
Jun/08
IPO: US$4.1 bn raised
Aug/09
Jan/10
Bond: US$ 2.6bn raised
Beginning of thedrilling campaign
Acquisition of 70% stake in the Parnaíba Assets
Jun/10
OGX included in the Ibovespa Index
1st FPSO secured for 20 years
Survey and interpretation of the 3D seismic data
Procurement of all equipment and services necessary to initiate the drilling campaign
Apr/11
5 onshore blocks acquired in Colombia
May/11
1st Oil
Jan/12
Sep/09
Updated OGX portfolio to 10.8 bn(1) boe of potential resources
(1) Calculated by OGX based on potential, prospective and contingent volumes contained in the DeGolyer and MacNaughton Reports
1 block acquired in Parnaíba (50% stake)
Sep/11
Oct/11
Arrival of FPSO OSX-1
Total investments of US$ 4.1bn of Drilling Capex and Signature Bonus + US$ 245 M of Seismic Campaign
Total cash raised to date: US$8.0 bn
OGX OWNERSHIP AND CORPORATE STRUCTURE
Free Float
20 Blocks
5 - Santos (100%) (2)
5 - Espírito Santo (50%)
5 - PAMA (100%) (2)
5 - Colombia (100%) (2)
7 Blocks
5 - Campos (100%) (2)
2 - Campos (50%)
8 Blocks
7 - Parnaíba (70%) (2)
1 – Parnaíba (50%) (2)
(1) EBX represented through Centennial Asset Mining Fund LLC (Nevada, USA) (“CAMF”)(2) OGX as operator(3) Market data as of September 30, 2011(4) MPX S.A. holds 33.33%
Petróleo e Gás Participações S.A.(Market Capitalization (3): ~ US$25 Billion)
Petróleo e Gás Ltda
OGX Campos Petróleo e Gás S.A.
Maranhão Petróleo e Gás Ltda.
Average daily traded volume (1 month): ~ US$184 million
~33 thousand investors
3rd most representative stock in Ibovespa index 6.1%
One of the most liquid common shares
61% 39%
99.99%99.99% 66.67%
100%70%100% 30%
6
MANAGEMENT ORGANIZATION STRUCTURE(1)
Eike BatistaCEO
Paulo MendonçaGen. Exec. Officer
Joaquim Dib Cohen (32)Oil & Gas Commercialization
Paulo Mendonça (38)Exploration Officer
José Roberto FaveretGeneral Counsel
Marcelo TorresCFO
Reinaldo Belotti (34)Production Officer
Armando Ferreira (31)Production Development
Olavo Foerch (32)Procurement
Ricardo Juiniti (27)Drilling
Billy Pinheiro (30)Logistics
Ricardo Abiramia (24)Production
Leandro Leme (31)HSE
Edmundo Marques (24)Exploration Santos & Eq. Margin
Dolores Carvalho (35)E&P Laboratory
Luiz Reis (45)Strategic Alliances
Paulo de Tarso Guimarães(34)New Areas
Marcos Amaral (28)Applied Technology
Paulo Ricardo (28)Exploration Campos & ES
Roberto Toledo (31)E&P Laboratory
Celso Martins (34)Onshore Basin
Ernani Porsche (33)International
Moacir Santos (38)Geological Operations
HIGHLY SUCCESSFUL AND COMMITTED MANAGEMENT TEAM, COMBINING UNIQUE INTELLECTUAL CAPITAL AND SUPERIOR EXECUTION SKILLS
7(1) Parentheses represent years experience in the E&P industry
HIGHLY QUALIFIED EXPLORATION TEAM
EXPLORATORY TEAM
Paulo Mendonça led the Petrobras exploration team from 2002 to 2007
Success index in excess of 60% on average offshore Brazil from 2002-2007 whilst at Petrobras
Over 10 billion boe and more than 50 new fields discovered
PBR SUCCESS INDEX
PROVEN TRACK RECORD HAVING OPENED SEVERAL NEW OIL FRONTIERS, INCLUDING THE PRE-SALT, AND DISCOVERING OVER 50 NEW OIL FIELDS
8
BRAZIL: VAST UNTAPPED OIL & GAS POTENTIAL
Source: EIA-DOE, BP Statistical Review of World Energy 2010, Saudi Aramco, UPPSALA University, Petrobras, ANP and OGX analysis
Source: ANP
STILL SIGNIFICANTLY UNDER-EXPLORED
OIL & GAS IN THE WORLD
Source: IHS
LARGEST OIL AND GAS DISCOVERIES IN THE WORLD
Source: BP Statistical Review of World Energy 2010 & analyst estimates
NEW PROVINCES COULD PROPEL BRAZIL INTO TOP RESERVES HOLDERS
Oil Resources - December 2009 (Bn bbl) % of sedimentary basins under concession
Bn Boe
Brazil
Turkmenistan
Iran
Kazakhstan
China
Russia
Australia
Kuwait
Israel
Saudi Arabia
India
Indonesia
Venezuela
Papua
New Guinea
Ghana
+ 35 bn boe
265172
138115
10210098
7444403733
2827
151413
Saudi Arabia
Venezuela
Iran
Iraq
Kuwait
Brazil post Tupi
UAE
Russia
Libya
Kazakhstan
Nigeria
Canada
US
Qatar
China
Angola
Brazil
Unlicensed 96%
Licensed 4%
COUNTRYHISTORICAL O&G PROD.(BN BOE)
USA (1900-2010) 440
EX-USSR (1900-2010)
335
SAUDI ARABIA (1938-2010)
145
BRAZIL(1941-2010)
14.5
BRAZIL’S HISTORICAL UNDER-EXPLORATION UNDERPINS MASSIVE GROWTH OPPORTUNITIES FOR OGX
9
Unlicensed96%
Oil and Gas Discovered Volumes2000 – 2010 (Bn boe)
OGX PORTFOLIO
2
PO
RTFO
LIO
Deep water~1,000m
Shallow water~150m
Shallow water ~120m
Shallow water ~60m
OGX PORTFOLIO
35 blocks: 30 blocks in 5 Brazilian sedimentary basins and 5 onshore blocks in 3 Colombian sedimentary basins
Unique portfolio with 10.8 billion potential recoverable barrels of oil equivalent (boer)
OGX’s business plan is based on 4.1 billion barrels already discovered in the shallow waters of the Campos Basin
11
CAMPOS BASIN: LOW RISK, SHALLOW WATER AND
LARGE VOLUMES
OGX’S DISCOVERED ACCUMULATIONS CONFIRM A NEW HYDROCARBON PROVINCE IN THE SOUTHERN CAMPOS BASIN
5.7 bn bbl of net 3C, net delineation and net mean risked prospective resources, evaluated by D&M (pre-salt not included)
5 blocks operated by OGX (100% owned) and 2 operated by Maersk Oil (50% owned)
Total area of 1,177 km2
Average water depth of ~120m
55 wells drilled
Almost 100% success rate
CAMPOS BASIN
12
SANTOS BASIN IS ONE OF THE MOST PROMISING EXPLORATORY AREAS IN BRAZIL, WITH SIGNIFICANT POTENTIAL FOR GAS AND LIGHT OIL
1.8 bn boe of net risked prospective resources (POS of 27%), evaluated by D&M
5 blocks operated by OGX (100% owned)
Total area of 820 km²
Average water depth of ~150 m
10 wells drilled
2 recent successful tests (OGX-47 and OGX-11D) – 20-25% condensate with great flow rates
70% success rate
SANTOS BASIN
SANTOS BASIN: HIGH POTENTIAL
13
NEW FRONTIER BASIN WITH HIGH POTENTIAL FOR GAS PRODUCTION
1.0 bn boe of net risked mean prospective resources POS (17%) and net 3C, evaluated by D&M
8 blocks operated by OGX Maranhão
Total area of 24,500 km²
Monetization of gas through thermoelectric plants to be developed by MPX/Petra (3,722 MW already licensed)
70% success rate (10 wells drilled)
Commerciality declared for 2 accumulations
PARNAÍBA BASIN
PARNAÍBA BASIN: MAJOR GAS PROVINCE
14
THE NEW FRONTIER OF ESPÍRITO SANTO HAS PROVEN TO BE A VERY ACTIVE PETROLIFIC SYSTEM WITH RECENT IMPORTANT DISCOVERIES IN NEIGHBORING BLOCKS
817 mn boe of net mean risked prospective resources (PoS of 33%), evaluated by D&M
5 blocks operated by Perenco (50% owned)
Total area of 3,620 km²
Average water depth of ~1,000 m
1st well drilled in 4Q11 (Moriche)
2nd well initiated drilling in 4Q11 (Guarapari)
ESPÍRITO SANTO BASIN
ESPÍRITO SANTO BASIN: NEW FRONTIER IN DEEP
WATER
15
NEW FRONTIER WITH GEOLOGICAL MODEL SIMILAR TO WEST AFRICA, WHERE SIGNIFICANT DISCOVERIES WERE MADE RECENTLY
447 mn boe of net mean risked prospective resources (PoS of 21%), evaluated by D&M
5 blocks operated by OGX (100% owned)
Total area of 960 km²
Average water depth of ~60m
1st well to be drilled in 2012
PARÁ-MARANHÃO BASIN
PARÁ MARANHÃO BASIN: PROMISING NEW FRONTIER
16
BALANCED PORTFOLIO OF EXPLORATORY ASSETS, COMBINING PRODUCTION REGIONS WITH LESS EXPLORED AREAS NEXT TO THE MARACAIBO BASIN, ONE OF THE MOST PROLIFIC
PROVINCES IN THE WORLD
1.1 bn boe of net prospective resources and net potential petroleum quantities, evaluated by D&M
5 blocks operated by OGX (100% owned), 3 of which are located close to Maracaibo Basin (~80 bn boe discovered and ~50 bn boe already produced)
Beginning of the Seismic Campaign in 1H12
First well to be drilled in mid 2012
COLOMBIAN BASINS
COLOMBIA: CESAR-RANCHERÍA, MIDDLE AND LOWER
MAGDALENA VALLEYS: GREAT UPSIDE POTENTIAL
17
OIL DISCOVERIES OF 4.1 BN BBL ARE ALREADY UNDER PRODUCTION DEVELOPMENT IN THE SHALLOW WATERS OF CAMPOS BASIN
OGX PORTFOLIO POTENTIAL: BREAKDOWN OGX PORTFOLIO POTENTIAL(1)
BILLION BOE (7)OGXNet
CAMPOS 5.7
Contingent (2)3.0
Delineation (3)1.3
Prospective (POS = 56.2%) 1.4
SANTOS (4)(6) (POS = 27.0%) 1.8
ESPÍRITO SANTO(4) (POS = 32.6%) 0.8
PARÁ-MARANHÃO(4) (POS = 21.3%) 0.4
PARNAÍBA 1.0
Contingent (2)0.1
Conventional Prospective (POS = 16.5%) 0.6
Unconventional Prospective (POS = 18.2%) 0.4
COLOMBIA 1.1
Prospective (POS = 10.4%)(4) 0.1
Potential Petroleum Quantities(5)1.0
OGX Portfolio 10.8Note: “POS “ defined as geological probability of success(1) The OGX portfolio potential was calculated by OGX based on volume estimates contained in the DeGolyer and MacNaughton Reports(2) We consider the 3C contingent resources in the arithmetic summation of our potential portfolio based on the assumption that these resources will be converted to 2C and 1C resources after the appraisal campaign and that they will be converted into reserves after the removal of contingencies(3) We consider the high estimate and not Pg-adjusted delineation area prospective resources as we believe the delineation area is part of the 3C area(4) Prospective resources mean estimates Pg-adjusted. Colombia considered two Colombian basins, the Lower and Middle Magdalena Valleys Basins(5) Includes petroleum potential quantities in one Colombian basin, the Cesar-Ranchería Basin(6) OGX net interests in the table are not the same as OGX net interests contained in the DeGolyer and MacNaughton September 2009 report due to the fact that OGX now holds 100% of the interests in the concessions included in that report(7) Gas volumes were converted by OGX to barrels of oil, using a conversion rate of 5,615 ft³ of natural gas to one boe
73%ShallowWater
8%Deep Water
19%Onshore
79% Oil
21% Gas
PORTFOLIO BREAKDOWN
18
OGX OPERATIONS
3
EXPLORATION DRILLING CAMPAIGN
BCH-05E (BCH):Daily Rate: US$ 31.5kMax. well depth: 11,500 ftContract Expires: Feb.2012
3rd rig contracted
Ocean Lexington (Diamond):Daily Rate: US$ 335kMax. well depth: 20,000 ftContract Expires: Feb.2013 (+one optional year)
Ocean Ambassador (Diamond): Daily Rate: US$ 260k Max. well depth: 20,000 ft Contract Expires: Sep.2012 (+ one optional year)
Ocean Quest (Diamond):Daily Rate: US$ 270kMax. well depth: 25,000 ftContract expires: Dec.2012 (+ one optional year)
ENSCO 5002 (Ensco)Daily Rate: US$ 220k Max. well depth : 20,000 ftContract Expires: Nov.2013
Ocean Star (Diamond):Daily Rate: US$ 310kMax. well depth: 25,000 ftContract Expires: Feb.2013 (+ one optional year)
ENSCO 5004 (Ensco):Daily Rate: US$235kMax. well depth: 20,000 ftContract Expires: Nov.2013
QG-1 (Queiroz Galvão):Daily Rate: US$ 28kMax. well depth: 14,750 ftContract Expires: Jan.2012
WILDCAT+APPRAISAL WELLS 2009 2010 2011 2012 2013 TOTAL
Campos 5 18 18 4 0 45
Santos 1 6 3 4 0 14
Espírito Santo 0 0 2 3 1 6
Pará-Maranhão 0 0 0 4 3 7
Parnaíba 0 2 9 4 0 15
Total 6 26 32 19 4 87
OFFSHORE DRILLING ONSHORE DRILLING
DRILLING CAMPAIGN EXPANDED – 8 RIGS ALREADY OPERATING SIMULTANEOUSLY 20
OPERATIONAL CAPABILITIES AND STRUCTURE
OFFSHORE DRILLING FIRST CLASS SUPPLIERS
HIGH QUALIFIED TEAM
LOGISTICS OPERATIONAL
SUPPORT
PLATFORM SUPPLY VESSEL (PSV)
QUANTITY:5
CONTRACTOR: EDISON CHOUEST/ TIDE WATERANCHOR HANDLING TUG SUPPLY (AHTS)
QUANTITY: 6
CONTRACTOR: EDISON CHOUEST/NORSKAN/MAERSK
FAST SUPPLY VESSEL (FSV)
QUANTITY: 1
CONTRACTOR: EDISON CHOUEST
MID SIZE HELICOPTER
QUANTITY: 4
CONTRACTOR: AERÓLEO
OGX Team: ~300 employees
Over 6,000 people dedicated
3D Room / IOSC
EFFICIENCY,
AGILITY AND
OPERATIONAL
SECURITY
21
EXECUTION ON TRACK
4
CAMPOS BASIN: FOCUSING ON WILDCAT &
APPRAISAL WELLS2010
OGX-9D
OGX-13
OGX-21/OGX-26HP
2011 - Drilling Area 1C
OGX-50D/OGX-55HP 1C – Albian 52m
OGX-53D/OGX-60HP 1C – Albian 71m
OGX-65D/OGX-68HP 1C – Albian 97m
2011 - Drilling Area 2C
OGX-40D 2C – Albian 107m
OGX-41D/OGX-44HP 2C – Albian 92m
2011 - Drilling Area 3C
OGX-35D 3C – Albian 80m
OGX-36D/OGX-39HP 3C – Albian 60m
OGX-42D 3C – Albian 82m
OGX-48 3C – Albian 12m
OGX-56D 3C – Albian 60m
OGX-61 3C - Albian: 9m
OGX-62 3C – Santonian 26m Albian 20m
OGX-64 3C – Santonian 23m
OGX-67 3C – Under analysis
OGX-69 3C - Albian 38m
OGX-70 3C – In progress
OGX-71 3C – In progress
2011 - Drilling Area Delineation
OGX-43D Delineation– Albian 50m
OGX-45D Delineation – Maastric. 5m
OGX-54 Delineation– Albian 24m
2009
OGX-1
OGX-2 A
OGX-3
2010
OGX-4
OGX-5
OGX-6
OGX-7 A
OGX-8
OGX-10
OGX-14
OGX-15
OGX-18
OGX-20
MRK-3/4P
2011
OGX-25/27
OGX-28D
OGX-29/32
OGX-31
MRK-5
OGX-33
OGX-37
OGX-52
OGX-58DP
26 WILDCAT WELLS AND 29 APPRAISAL WELLS DRILLED WITH HYDROCARBONS AND RESULTS WHICH SUPPORT EXPECTATIONS
Note:Drilling area as per D&M’s Dec/10 reports and net pay
23
Wildcat wells Appraisal wells
CAMPOS BASIN: DEVELOPMENT BUSINESS PLAN
Illustrative
Project 1 Waimea Complex
1st oil date: Jan.1242 development wells
28 production 14 injection
3 FPSOs and 2 WHPsOSX-1, OSX-2 and
WHP-1
Oil of 20° API
Water depth: 140m
Average production per well 10 – 20 kbpd
Project 2Waikiki Complex
1st oil date: 4Q13
22 development wells14 production 8 injection
1 FPSO and 1 WHPOSX-3 and WHP-2
Oil of 23° - 28° API
Water depth: 120m
Average production per well 15 – 20 kbpd
4.1 bn bbl
Shallow waters
Average production per
well 10 – 20 kbpd
12 FPSOs and 11 WHPs
—5 FPSOs and 2
WHPs already secured
Average field life
—Capex US$ 2/bbl
—Opex <US$ 16/bbl
CAMPOS BASIN DEVELOPMENT PLAN
INITIAL PROJECTS
24
CAMPOS BASIN: POSITIVE HORIZONTAL WELLS TEST
RESULTS
WAIMEA OGX – 26HP
Production capacity of up to 20,000 bbl/day
Oil Quality of 20o API
Tested in Jan/2011
PIPELINE OGX-39HP
Production capacity of around 10,000 bbl/day
Oil Quality of 19o API
Tested in Jul/2011
WAIKIKI OGX-44HP
Production capacity of up to 20,000 bbl/day
Oil Quality of 23o API
Tested in Jun/2011
3 DRILL-STEM TESTS ALREADY PERFORMED IN HORIZONTAL WELLS PREPARED FOR PRODUCTION
AND MORE TO COME IN 2012
HORIZONTAL WELL TESTED DRILL-STEM TESTS PERFORMED IN HORZINTAL WELLS
25
CAMPOS BASIN: PRODUCTION WILL BEGIN IN THE
WAIMEA ACCUMULATION
26
BEGINNING OF PRODUCTION
Horizontal production well already drilled, completed and successfully tested
Hydraulic Power Unit (HPU) installed Umbilicals installed Flexible lines installed Anchor system (moorings and piles) installed Installation support vessel delivered
Wet christmas tree installed Electrical submersible pump installed
EWT approved by ANP (National Petroleum Agency)
1ST OIL PRODUCTION CONCEPT
OGX FIRST OIL EXPECTED FOR JANUARY/12 THROUGH EXTENDED WELL TEST (EWT)
Main characteristics:
Production potential of 40 kbpd w/ capacity limited to 20 kbpd
Oil quality of 20° API
Water depth of 140 meters
BuoyOSX-1
Risers and Umbilicals
Flexible lines
Wet christmas tree 1
Moorings and Piles
Wet christmas tree 2
Wet christmas tree 3
Illustrative frames
Horizontal Well
Electrical submersible pump
Preliminary and Installation License
26
Granting of first licenses (LP and LI)
Public hearing: Jul 16, 2011Preliminary License (LP): Sep 8, 2011Installation License (LI): Sep 16, 2011
Buoy Installation
Mobilization of equipment to the site
Installation of buoy
Beginning of Subsea Installation
10 PilesMoorings chains
MWA (middle water arch)
CAMPOS BASIN: PREPARATION TO 1ST OIL
2727
CAMPOS BASIN: FINAL STEPS TOWARDS 1ST OIL
2828
CAMPOS BASIN: WAIMEA COMPLEX PRODUCTION
CONCEPT
29
Pioneer Project Development
Illustrative frame
PIONEER PRODUCTION CONCEPT
DEVELOPMENT WELLS
Production Well 1 (OGX-26HP) Production
Well 2(OGX-55HP)
Production Well 3 (OGX-60HP)
Injection Well 1
Injection Well 2
5 development wells connected to the FPSO OSX-1
3 horizontal production wells
1st production well, OGX-26HP, ready for production
2nd production well, OGX-55HP, currently drilled
3rd production well, OGX-60HP, currently being drilled
Average production per well 10–20 kbpd
2 subsea injection wells
1 FPSO: OSX-1
OSX-1 arrived in October/2011
OGX-55HP and OGX-60HP wells to be hooked-up to OSX-1 after the declaration of commerciality in 2012
With 3 production wells on stream in 2012, OGX should reach production levels of ~50 kbpd
PIONEER PRODUCTION DEVELOPMENT
29
Operational Expenditures(Leased Equipment)
Capital Expenditures
FPSOOil capacity: 100 K bpd
Liquid capacity: 160 K bpdOil will be offloaded
WHPCapacity: 30 wellsDrilling package on topside
Drilling + CompletionDevelopment wells with dry completionGas will be reinjected, used for gas lift or power generationWater Injection
WHP Subsea Flow LinesPower line
Gas Lift lineService line
Water Injection lineProduction line
Test line
CAMPOS BASIN: REPLICABLE DEVELOPMENT CONCEPT
Opex<US$ 16/bbl
CapexUS$ 2/bbl
Note: Please see details in the Appendix slide: “Campos Basin: Typical Production Project” 30
OSX-1 delivered in October 2011
OSX-2 and OSX-3 to be built in world-class Singaporean shipyards by SBM and Modec
OSX-4 and OSX-5 hulls already acquired by OSX
OSX-1
OSX-2
OSX-3
OSX-4
OSX-5
OSX-6
OSX-7
OSX-8
OSX-9
OSX-10
OSX-11
OSX-12
Unit 2011 … 2013 2014 2015 2016
WHP-1 and WHP-2 with detailed engineering ongoing (EPC awarded to Techint by OSX)
Unit 2013 2014
WHP-1
WHP-2
WHP-3
WHP-4
WHP-5
WHP-6
WHP-7
WHP-8
WHP-9
WHP-10
WHP-11
Oct
1st Q
1st Q
4th Q
1st Q
3rd Q
4th Q
4th Q
4th Q
2nd Q
3rd Q
2nd Q
3rd Q
4th Q
3rd Q
4th Q
4th Q
4th Q
1st Q
2nd Q
3rd Q
4th Q
4th Q
WHPsFPSOs
FPSOs AND WHPs EXPECTED DELIVERIES
31Production equipment allocated to begin operations until 2013
Waimea
Waimea
Waikiki
Waikiki
Waimea
2014
31
FPSOs WHPs
OSX-1: Production capacity of 80 kbpd and storage of 950 kbbl
Average Day rate of US$ 263 k
Arrived in Oct/11
OSX-2: Production capacity of 100 kbpd and storage of 1.3 Mbbl
Expected Average day rate of US$ 290 k
Contracted by OSX with SBM
OSX-3: Production capacity of 100 kbpd and storage of 1.3 Mbbl
Expected Average day rate of US$ 290 k
Contracted by OSX with MODEC
WHP-1: Capacity to drill up to 30 wells
Equipment on-stream by the end of 2013
Detailed engineering ongoing (EPC awarded to Techint by OSX)
WHP-2: Capacity to drill up to 30 wells
Equipment on-stream by the beginning of 2014
Detailed engineering ongoing (EPC awarded to Techint by OSX)
OSX-4: Production capacity of 100 kbpd and storage of 1.3 Mbbl
Order placed for Leasing contract and EPCI under procurement
OSX-5: Production capacity of 100 kbpd and storage of 1.3 Mbbl
Order placed for Leasing contract and EPCI under procurement
Two sister VLCC´s (Very Large Crude Oil Carriers) purchased on November, 2010 by OSX to be converted into FPSOs
SECURED PRODUCTION EQUIPMENT
3232
CAMPOS BASIN: OIL PRODUCTION RAMP-UP
33
Equipment Used OSX-1OSX-1OSX-2OSX-3
Accumulation WaimeaWaimeaWaikiki
Total # of Horizontal Wells 3 10
Production Capacity 60 Kbpd 260 Kbpd
Oil Production Target (kbpd) ¹
50
150
2012 2013
Note:1 To be reached through the end of the period 33
Gavião Real
Gavião Azul
PARNAÍBA BASIN: BUSINESS PLAN
Declaration of commerciality of two fields (Gavião Real & Gavião Azul) already submitted to ANP
Initial production expected in 2H12
Production of 5.7 M m³per day in 2013 (2.7 M m³per day net to OGX S.A. or ~15 kboepd)
Three seismic crews working on the blocks
Gas to be sold to MPX Power Plants
MPX has obtained installation license of 3,722 MW
Drilled and tested the first production well in the basin, GVR-1 (Gavião Real field) with excellent results production potential of 5.0 M m³/day (AOF)
EPC contracted for the construction of the gas processing facility
Contract signed with Valerus-Geogas
Environmental licenses granted (Preliminary and Installation Licenses)
PARNAÍBA COMPLEX
Legend:
Seismic Lines
Project 1 1st gas: 2H12
34
Wells
PARNAÍBA BASIN: PROJECT DEVELOPMENT
35
MPX + Petra investments
OGX Maranhão (70%) + Petra (30%) investments
Manifolds
Short Gas Pipeline(<2 km)
Gas Thermal Power Plant
Transmission Lines
Production Facility for Dry Gas
Gathering System
Lines
PARNAÍBA DEVELOPMENT SCHEMATIC GAS THERMAL POWER PLANT DEVELOPMENT
Notes:1 Facilities cost includes: gathering system (lines and manifolds), a production facility for dry gas and a very short pipeline2 Includes operating and maintenance of production facilities, lines, gas pipelines and wells
CapexTotal drilling cost: US$ 340 M
Total facilities1 cost: US$ 110M
Opex field lifeLess than US$ 0.30/1,000 cubic feet
35
19 units12 units for Campos Basin discoveries
PRODUCTION TARGETS
36
OGX PRODUCTION TARGETS OGX OFFSHORE EQUIPMENT DEMAND
FP
SO
TLW
PW
HP
5 unitsexpected to be used in theEspírito Santo Basin (the only deep water blocks in OGX’s portfolio)
24 units 11 units for Campos Basin discoveries
Portfolio potential of 10.8 bn of recoverable boe: >10 years of production growth
Campos and Parnaíba discoveries (4.2 bn boe) can support 730,000 boepd of production level
Additional potential resources (6.6 bn boe) would allow OGX to reach and sustain a plateau of 1.4 million boepd from 2019 and beyond
In kboepd
Expected demand of 48 offshore units
Total of 23 units estimated for OGX’s Campos Basin discoveries (12 FPSOs and 11 WHPs)
Strategy to expedite development with production equipment contracted 2-3 years in advance
2012 2013 2015 2019
CAGR : 60%
Development of Campos and
Parnaíba discoveries
50165
730
1,380
Offshore equipment already secured for initial production (OSX-1, 2 & 3 and WHP-1 & 2)
36
5FINANCIAL OVERVIEW
STRONG CASH POSITION
Solid cash position of R$6.7 billion, or US$3.6 billion, to support exploration commitments, development and initial production
US$2.5 billion invested in offshore deposits
US$465 million hedged through NDF (non deliverable forward) contracts
~80% of total cash protected against FX variations
Operating Cash Flow (4Q11-4Q13): US$ 0.5-1.0 bn
Capex (4Q11-4Q13): US$ 3.5-4.0 bn
Cash allocated in R$: Average cumulative gross return
equivalent to approximately 103.4% of the Interbank
Deposit Rate (CDI), or 13% p.a.
Cash Allocated in US$: Average cumulative gross return
equivalent to approximately 1.4% p.a.
Cash position in fixed income instruments allocated to
Brazil’s most solid financial institutions
R$ billion
US$ billion
CASH POSITION EVOLUTION CASH ALLOCATION
2Q11 JUL AUG SEP0.0
2.0
4.0
6.0
0.0
2.0
4.0
6.0
Cash in R$
Bradesco37%
Itau Unibanco36%
BTG Pactual8%
Santander8%
Votorantim5%
CS4%
Others3%
38
APPENDIX
ONGOING ACTIVITIES
1OGX Maranhão has 70% W.I
Well Block Accumulation Rig Coast Distance Water Depth
Status Net Pay
AY OGX-60HP BM-C-41 Waimea – 2D ENSCO 5004 84Km 132m In progress since 08/22
BH OGX-63 BM-S-57 Fortaleza Ocean Quest 102Km 155m In progress since 10/08 Albian: 110m
BL OGX-67 BM-C-40 Ingá - 2 Ocean Ambassador 93 Km 111m Under analysis
BI OGX-68HP BM-C-41 Waimea – 4HP ENSCO 5002 83Km 135m In progress since 11/24
BQ OGX-70 BM-C-41 Pipeline - 5 Ocean Lexington 80Km 123m In progress since 12/16
BR PERN-2 BM-ES-38 Guarapari Ocean Star 110Km 823m In progress since 12/28
BS OGX-71 BM-C-41 Ingá-3 Ocean Ambassador 93 Km 112m In progress since 01/02/12
BU GVR-5D PN-T-681 Gavião Real BCH-05 Onshore Block In progress since 01/13/12
BT GVR-4D PN-T-681 Gavião Real QG-1 Onshore Block In progress since 01/14/12
OGX Blocks Oil & Gas Fields
PARNAÍBA BASINCAMPOS BASIN SANTOS BASIN ESPÍRITO SANTO BASIN
40
CONCLUDED WELLS (1 OF 5)
Well Block Accumulation Rig Coast Distance Water Depth Net Pay
A 1- MRK - 2B BM-S-29 Abacate Sovereign Explorer 130 km 100 m Oil &Gas shows
B OGX-1 BM-C-43 Vesuvio Ocean Ambassador 85 km 140 m Eocene: 57m
J OGX-9D BM-C-41 Vesúvio Direcional Ocean Ambassador 87 km 142 m Eocene: 60m
N OGX-13 BM-C-41 Vesúvio Vertical Ocean Lexington 87 Km 138m Eocene: 10m
C OGX-2A BM-C-41 Pipeline Ocean Ambassador 77 km 130 m
Eocene: ShowsCretac.: ShowsAlbian: 100mAptian: 50mBarremian: 15m
G OGX-6 BM-C-41 Etna Ocean Quest 82 km 137 mAlbian: 74mAptian: 17m
D OGX-3 BM-C-41 Waimea Sea Explorer 83 km 130 mAlbian: 80mApt./Barrem: 50m
I OGX-8 BM-C-41 Fuji Ocean Star 82 km 125 mAlbian: 43mAptian: 44m
E OGX-4 BM-C-42 Kilawea Ocean Quest 79 km 150 m Eocene: 17m
F OGX-5 BM-C-43 Krakatoa Ocean Ambassador 79 km 145 mMaastric.: ShowsAlbian: 30mAptian: 20m
H OGX-7A BM-C-42 Huna Ocean Lexington 86 km 152 mAlbian: >17mAptian: 35m
K OGX-10 BM-C-42 Hawaii Sea Explorer 79 km 158 mCenomanian: 11mAlbian: >13m Aptian: 40m
L OGX-11D BM-S-59 Natal Ocean Quest 84 km 180m Santonian: 75m
M OGX-12 BM-S-57 Niterói Ocean Star 95 Km 150m -
O OGX-14 BM-C-40 Peró Ocean Lexington 96 Km 104m Albian: 35m & 27m
P OGX-15 BM-C-41 Santa Helena Ocean Ambassador 78km 130mAlbian: 32mAptian: 31m 41
CONCLUDED WELLS (2 OF 5)
42
Well Block Accumulation Rig Coast Distance Water Depth Net Pay
Q OGX-16 PN-T-681 California QG-1 Onshore BlockDevonian: Gas shows, 23m & 25m (column)
R OGX-17 BM-S-56 Belém Ocean Star 85 Km 136m Albian: 43m
S OGX-18 BM-C-40 Ingá Ocean Lexington 95 Km 105mSantonian: Oil showsAlbian: 12m (Oil column)
T OGX-19 BM-S-58 Aracaju Ocean Quest 112 Km 172m Santonian: 40m
U OGX-20 BM-C-41 Tupungato Ocean Ambassador 84 Km 132mMaastrichtian: 9m & 3mAlbian: 50mAptian: 42m
V OGX-21D BM-C-41 Waimea Direcional Sea Explorer 84 Km 134m Albian: 14m
W OGX-22 PN-T-681 Fazenda São José QG-1 Onshore BlockUpper Devonian: 49m Lower Devonian: 47m
X OGX-23 BM-S-58 Ilhéus Ocean Quest 107 Km 152m -
Y OGX-24 BM-S-56 Itagi Ocean Star 94 Km 140m -
Z MRK-3/ 4P BM-C-372 Carambola-A Blackford Dolphin 74 Km 134mSantonian: 14mAlbian: 43mAptian: 12m
AA OGX-25/ 27P BM-C-39 Waikiki Pride Venezuela 94 Km 105mEocene: 8m (gas)Albian-cenomanian: 145m
V OGX-26HP BM-C-41 Waimea Horizontal Sea Explorer 84 Km 134mAlbian: 1,000m (horizontal section)
AB OGX-28D BM-C-41 Illimani Ocean Star 80 Km 126m Albian: 24m
AC OGX-29/ 32 BM-C-39 Itaipu Ocean Lexington 86 Km 104m Oil shows
AE OGX-31 BM-C-41 Osorno Ocean Ambassador 79 Km 136mAlbian: 48mAptian: 23m
42
CONCLUDED WELLS (3 OF 5)Well Block Accumulation Rig Coast Distance Water Depth Net Pay
AJ OGX-36D BM-C-41 Pipeline D Ocean Star 77 Km 128m Albian: 60m
AH OGX-35 BM-C-39 Waikiki Direcional Ocean Lexington 89 Km 104m Albian-Cenomanian: 80m
AG MRK-5 BM-C-37 2 Carambola B Blackford Dolphin 80 Km 130m Albian: 17m
AF OGX-33 BM-C-41 Chimborazo Pride Venezuela 84 Km 127m Albian: 42m
AK OGX-37 BM-C-43 Potosi Ocean Ambassador 87 Km 140m Oil Shows
AO OGX-41DBM-C-39 / BM-C-40
Waikiki - 2 D Ocean Lexington 90 Km 110m Albian: 92m
AN OGX-40D BM-C-41 Pipeline - 2 D Sea Explorer 79 Km 130m Albian: 107m
AD OGX-30 BM-S-58 Salvador Ocean Quest 105 Km 151m Albian: 50m
AI OGX-34 PN-T-68 1 Bom Jesus QG-1 Onshore Block Devonian: 23m
AQ OGX-43D BM-C-41 Illimani -1 D Ocean Ambassador 80 km 140 m Albian: 50m
AO OGX-44HPBM-C-39/ BM-C- 40
Waikiki Ocean Lexington 90 Km 110mAlbian-Cenomanian: 1,063m (horizontal section)
AL OGX-38 PN-T-68 1 Fazenda São José BCH-05 Onshore Block Devonian: 43m
AS OGX-46D PN-T-68 1 Califórnia - D QG-1 Onshore Block Devonian: 15m
AU OGX-48 BM-C-41 Pipeline - 4 Ocean Ambassador 75 Km 128m Albian: 12m
AP OGX-42D BM-C-41 Pipeline -3 D Pride Venezuela 78 km 120mEocene: 6mAlbian: 82m
AW OGX-50D BM-C-41 Waimea – 3 D Sea Explorer 84 Km 131mSantonian: 1.7mAlbian: 52m
¹ OGX Maranhão has 70% W.I. ² OGX has 50% W.I. and Maersk is the operator 43
CONCLUDED WELLS (4 OF 5)Well Block Accumulation Rig Coast Distance Water Depth Net Pay
AR OGX-45D BM-C-40 Waikiki – 3 D Ocean Lexington 96 Km 109m Maastrichtian: 5m
AM OGX-39HP BM-C-41 Pipeline Horizontal Ocean Star 77 Km 128m Albian: 1,000m (horizontal section)
AX OGX-52 BM-C-41 Tambora Ocean Ambassador 93 Km 128m Santonian: 5m
Albian: 96m
AS OGX-51DP PN-T-68 Califórnia - 2 DP QG-1 Onshore Block Devonian: 8m
AV OGX-49 PN-T-68 Fazenda São José BCH-05 Onshore Block -
AY OGX-53D BM-C-41 Waimea – 2D Pride Venezuela 84 Km 132m Albian: 71m
BB OGX-57 PN-T-68 Fazenda São José - 2 QG-1 Onshore Block -
AT OGX-47 BM-S- 59 Maceió Ocean Quest 110Km 185m Santonian: 51m
AZ OGX-54 BM-C-41 Fuji - 2 Ocean Lexington 81Km 136m Albian: 24
BC OGX-58DP BM-C-41 Tambora Ocean Ambassador 93Km 128m -
BA OGX-56D BM-C-41 Fuji – 1D Ocean Star 77Km 128m Albian: 60m
BD OGX-59 PN-T-49 Fazenda Torrão BCH-05 Onshore Block Devonian: 9m
BG OGX-62 BM-C-40 Ingá - 1 Ocean Lexington 93Km 105mAlbian-Cenomanian: 20mSantonian: 26m
AW OGX-55HP BM-C-41 Waimea – 3HP Sea Explorer 84Km 131m Albian: >1,000m (horizontal section)
BE GVR-1D PN-T-68 Gavião Real QG-1 Onshore Block Development well
BF OGX-61 BM-C-41 Illimani – 2 Ocean Ambassador 87 Km 124m Albian: 9m
¹ OGX Maranhão has 70% W.I. ² OGX has 50% W.I. and Maersk is the operator 44
CONCLUDED WELLS (5 OF 5)Well Block Accumulation Rig Coast Distance Water Depth Net Pay
BJ OGX-66 PN-T-67 Angical BCH-05 Onshore Block -
BI OGX-65D BM-C-41 Waimea – 4D ENSCO 5002 83km 135m Albian: 97m
BG OGX-64DP BM-C-40 Ingá – 1DP Ocean Lexington 93Km 105m Santonian: 23m
BM PERN-1 BM-ES-37 Moriche Ocean Star 52km 1,148m -
BP OGX-69 BM-C-41 Fuji - 4 ENSCO 5002 81Km 125m Albian: 38m
BN GVR-3D PN-T-68 Gavião Real QG-1 Onshore Block Development well
BO GVR-2D PN-T-68 Gavião Real BCH-05 Onshore Block Development well
¹ OGX Maranhão has 70% W.I. ² OGX has 50% W.I. and Maersk is the operator 45
CAMPOS BASIN: TYPICAL PRODUCTION PROJECTTYPICAL REPLICABLE PROJECT ASSUMPTIONS CAMPOS BASINDistance from shore: 80 km
Water depth: 100 to 150 meters
Recoverable volume: 500 million bbl (low Gas:Oil Ratio (GOR)): all gas produced will be used for power generation or gas reinjection, if applicable
Equipment oil producing capacity: 1 FPSO: 100 Kbblpd 1 WHP: 30 wells
Drilled wells: 16 horizontal production wells and 9 injection wells 5 horizontal production wells pre-drilled from semi-submersible rig 11 production and 9 injection wells drilled from WHP
Capex: estimated unit cost of approximately US$ 2 / barrel Pre-drilled wells = US$ 50M (75 days per well) WHP drilled wells = US$ 20M (75 days per well) Well completion = US$ 15M (30 days per well) Package of sub-sea flow lines = US$ 65M
Opex: estimated unit cost lower than US$ 16 / barrel Leased equipment day rates with high local content (FPSOs US$ 350k / day & WHPs US$ 160k /day) Operating and maintenance expenditures of US$ 85k / day Variable operating costs of US$ 3.5 / barrel Abandonment costs at end of field life of US$ 100M
Production profile: Achieve production plateau in 3 quarters Plateau maintained for an additional 4 years 20 to 22 years of production decline from the plateau thereafter 46
TPPs
TPP Maranhão III
PARNAÍBA BASIN: GAS SALE CONTRACT WITH MPXREVENUE SCHEMATIC
CONTRACT CONDITIONS:
The contract should provide a 15% ROE for the TPP (Thermal Power Plant)
Gas producers should receive “remaining” revenue, guaranteeing extraordinary margins (“net back”)
— $ Fixed revenue (gas plant rental)
— $ Variable revenue (varies according to plant’s dispatch)
(OGX Maranhão and Petra)
$
$
$
(by Jan/1420 year contract50% take-or-pay)
(by Jan/1315 year contract0% take-or-pay)
(MPX and Petra)
TPPMaranhão
IV + V
Future Projects
Gas Producers
47
