1. Project Update
July 2011

2. Açu Shipyard – Licensing
• Term of Reference
• EIA filling
• Public Hearing
• Preliminary License
• Installation License
• Beginning of Construction (July)
1

3. Açu Shipyard – Industrial District
A new cluster for Heavy Industry
2

4. Açu Shipyard – Setup
Platform Platform construction
assembly area area
Modules
Drydock and construction area
effluent station
treatment
Green curtain
Water treatment station
FPSO Industrial unit Administrative
buildings
Quay
Administrative buildings with
Electric Substation 345 kV – 13.8 kV LEED Certification
(US Green Building Council)
3

5. 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
Biguaçu Açu
20M 20M
1 2 3 4 5 6 7 8 9 9M
18M 18M 1 2 3 4 5
9M
2.4M 2.4M 2.4M 2.4M 2.4M 2.4M 2.4M 2.4M 4M 4M 4M 4M 4M
WELDING LENGTH: (18M 8point) + 20m 20M = 182 M
Welding length: (18m x * 9POINT) + = 164m Welding lenght: (18m x 4point) =72m
2. Energy Savings: 30% reduction and US$ 4 million in annual savings
4

6. 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)
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
5

7. 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
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
6

8. Current Order Book – OGX
ESTIMATED CAPEX
EQUIPMENT CAPACITY DELIVERY**
US$ MM
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
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)
7

9. FPSO OSX 1
8

10. FPSO OSX 1 – Customization
MODIFICATION WORK
M380 New
NEW INSTALLATION
M230 New
M350 New
M320 Mod.
M200 New
M260 Mod.
M290 Mod.
N160 Mod.
N130 Mod.
Hull / Engine Room Mod. F110 Mod.
Central Pipe Rack Mod.
M430 Mod.
M400 Mod.
M310 New
M280 Mod.
M250 New M220 Mod.
W140 Mod.
9

11. FPSO OSX 1 – Project Progress
10

12. FPSO OSX 1 – Project Progress
• FPSO
– MECHANICAL COMPLETION AND COMISSIONING: 30TH OF JULY
• TURRET
– INSTAND-BY AT INDONESIA.
• COMPONENTS OF THE MOORING SYSTEM
– STORED IN BRAZIL.
11

13. FPSO OSX 1 – Project Progress
Delivery Progress & Timeline
FPSO OSX 1
100%
95%
90%
Purchase
85%
80% First Oil
75%
Delivery in
70%
Singapore
65%
60%
Planned Actual
FEB/11 MAR/11 APR/11 MAY/11
PLANNED 83.38% 84.81% 86.90% 90.38%
ACTUAL 80.88% 84.47% 86.96% 89.90%
12

14. FPSO OSX 1 – Hire of Personnel On-Track
Percentage of Workers Hired
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
% Planned % Actual
No. of employees FEB/11 MAR/11 APR/11 MAY/11
PLANNED 50 58 79 79
ACTUAL 46 61 73 74
13

15. FPSO OSX 1 – Personnel Experience
Age
ExperienceTime
4%
13% 20 to 30 years
21%
30 to 40 years Less than 20 years
29%
40 to 50 years 20 to 30 years
25% 50%
50 to 60 years Greater than or equal to
30 years
29%
Greater than or equal to
60 years
29%
14

16. OSX 2 – WHP 1 System
15

17. OSX 2 – WHP 1 System
WHP 1 OSX 2
16

18. OSX 2 – WHP 1 System
OSX 2 WHP 1
Expected Timeline Status Expected Timeline Status
GTD GTD
RFP RFP
Delivery at shipyard* 2Q13 Delivery at shipyard* 1Q13
* ex-installation * ex-installation
Construction Contract Construction Contract
• EPCIC (Engineering, Procurement, • EPCIC (Engineering, Procurement,
Construction, Installation and Construction, Installation and
Commissioning) contract executed with Commissioning) contract executed with
SBM Offshore Techint
Long term debt commitment Drilling Package
• Proposals with 100% underwriting • Ongoing tender
• Mandated and with negotiated term sheet • Initial proposals received on
• Debt/Equity Structure – 80/20 December 8th, 2010 from AKER,
NOV, TTS and SEAWELL 17

19. OSX 3 – WHP 2 System
18

20. OSX 3 – WHP 2 System
WHP 2 OSX 3
19

21. OSX 3 – WHP 2 System
OSX 3 WHP 2
Expected Timeline Status Expected Timeline Status
GTD GTD
RFP RFP
Delivery at shipyard* 3Q13 Delivery at shipyard* 2Q13
* ex-installation * ex-installation
Construction Contract Contrato de Construção
• EPCIC (Engineering, Procurement, • EPCIC (Engineering, Procurement,
Construction, Installation and Construction, Installation and
Commissioning) in negotiation Commissioning) contract executed with
with Modec Techint
Drilling Package
• Ongoing tender
• Initial proposals received on
December 8th, 2010 from AKER,
NOV, TTS and SEAWELL 20

22. FPSOs OSX 4
& OSX 5
21

23. FPSOs OSX 4 & OSX 5
Gemini Star Suhail Star
• Two sister VLCC´s (Very Large Crude Oil Carriers) purchased in
November 2010
• Purchase price: US$ 27 MM each
• VLCC Gemini Star received on January 13th, 2011 and VLCC
Suhail Star received on February 22nd, 2011
• Purchased from Vela International Marine Limited (subsidiary of
Saudi Aramco)
• Engineering for conversion and integration under bidding
process
• Delivery ex-installation scheduled for 2Q14 and 4Q14,
respectively 22