investment in fpso charter projects for petrobras in brazil · 3 power balanced portfolio of 9.3gw...

Investment in FPSO Charter Projects for Petrobras in Brazil

May 14th, 2018Mitsui & Co., Ltd.

Copyright MITSUI & CO., LTD. ALL RIGHTS RESERVED.

1. Core Business of the Infrastructure Project Business Unit

2. Activities in offshore Oil & Gas infrastructure sector

3. Project Outline

4. What is FPSO?

5. Business Environment

6. MODEC - Strategic Partner for FPSO/FSO Business -

7. Mitsui FPSO/FSO Projects

Agenda

2


1. Core Business of the Infrastructure Project Business Unit

3

PowerBalanced portfolio of

9.3GW of power generationcapacity in 20 countries

Offshore Oil & GasInfrastructure

MODEC collaboration5 countries18 FPSOs

2 million bpd production

GasDistribution

Brazil: approx. 30 million m3/dcapacity (roughly 50% of

domestic supply total)

MODEC


2. Activities in offshore Oil & Gas infrastructure sector

4

Strong collaborative framework with MODEC Abundant project achievements for Petrobras (Brazil) Stable earnings from 18 FPSO*/FSO

Strength

Growth Initiatives

Raise operating rates, lower costs Win new orders for FPSO Extend offshore energy domains (subsea business* etc.)

*FPSO: Floating Production, Storage & Offloading System*Subsea businessService business for subsea oil and gas production equipment

Offshore Oil & Gas infrastructure

MODEC


3. Project Outline

5

Mitsui is participating in two project companies for a long-term charter business for the purpose of providing FPSOs for use in the Sepia field and Mero field off the coast of Brazil operated by Petrobras. Mitsuis equity interest in both FPSO projects is 32.4%.

Sepia

Mero

Bzios

TartarugaVerde

Espadarte

Sapinho

Lapa

Lula

Rio de Janeiro

Sao Paulo

Field Location

Petrobras

Project Company

MODEC

MitsuiMODEC

MOLMarubeniMitsui E&S

Senior Loan

Lenders

Charter Contract

ShareholdingLimited Recourse

Loan EPCI Contract

Project Structure

Copyright MITSUI & CO., LTD. ALL RIGHTS RESERVED. 6

FPSO for Sepia field FPSO for Mero (former Libra) field

Participation Date Jan 9

th, 2018 May 11th, 2018

Field Sepia pre-salt field, in Santos Basin (Offshore Brazil)Mero pre-salt field, in Santos Basin (Offshore Brazil)

Field Owner Petrobras Libra Consortium (Petrobras 40%Shell 20%Total 20%CNPC 10%CNOOC 10%)

Charterer/Operator Petrobras Petrobras

FPSOMajorSpecification

Vessel type VLCC ConversionStorage Capacity 1,400,000bblsOil Production 180,000bbls/dayGas Treatment 6,000,000Sm3/day

Vessel type VLCC ConversionStorage Capacity 1,400,000bblsOil Production 180,000bbls/dayGas Treatment 12,000,000Sm3/day

Contract Term Firm 21 years Firm 22 years

Shareholding Ratio

Mitsui 32.4%MODEC 20.1%MOL 20.6%Marubeni 17.6%Mitsui E&S 9.3%

same as on the left

3. Project Outline


FPSO = Floating, Production, Storage and Offloading System

Anchor chain

Fluid Riser

To shuttle tanker

1. Production (Process system)The fluid from the reservoir is separated into oil, gas, and water.

3. OffloadingCrude oil stored in the tanks is periodically offloaded to shuttle tankers.

2. StorageProcessed crude oil is stored in the tanks.

Oil Flow

4. What is FPSO?


Low-risk business withouttaking exploration risk

Marketing

Refining

Offloading & Transportation

ExplorationProduction

Dow

n-stream

Commercial Feasibility Assessment

Test drilling

Exploration

Upstream Field Concession

Surface Production & Storage

Subsea Production System onshore oilfield

offshore oilfield

Fixed Platform

Floating ProductionFacilities

FPSO/FSO

Spar

TLP

Semi-sub

4. What is FPSO?

Copyright MITSUI & CO., LTD. ALL RIGHTS RESERVED.9

Source: 2017 Q4 FPS Report (EMA) *Australia & New Zealand includes one project in bidding and final design stage in Pacific.

(as of September 2017)

5. Business Environment - Numbers of projects using floating oil & gas production facilities -

Graph1

Appraisal

Planning

Bidding & Final Design

1

World Total

48

135

56

Sheet1

1

Appraisal48

Planning135

Bidding & Final Design56

Graph1

Appraisal

Planning


2

North Sea

2

15

6

Sheet1

12

Appraisal2

Planning15


Graph1

Appraisal

Planning


2

Mediterranean

3

3

6

Sheet1

12

Appraisal3

Planning3


Graph1

Appraisal

Planning


2

Africa

8

26

9

Sheet1

12

Appraisal8

Planning26


Graph1

Appraisal

Planning


2

China

1

6

2

Sheet1

12

Appraisal1

Planning6


Graph1

Appraisal

Planning


2

Southeast Asia

11

24

7

Sheet1

12

Appraisal11

Planning24


Graph1

Appraisal

Planning


2

Southwest Asia & Middle East

6

11

Sheet1

12

Appraisal

Planning6


Graph1

Appraisal

Planning


2

Australia & New Zealand

1

13

1

Sheet1

12

Appraisal1

Planning13


Graph1

Appraisal

Planning


2

Canada

5

5

Sheet1

12

Appraisal5

Planning5


Graph1

Appraisal

Planning


2

GOM

4

14

3

Sheet1

12

Appraisal4

Planning14


Graph1

Appraisal

Planning


2

Brazil

10

16

9

Sheet1

12

Appraisal10

Planning16


Graph1

Appraisal

Planning


2

Other South America & Caribbean

2

7

2

Sheet1

12

Appraisal2

Planning7



Financials

(mil JPY) 2014/12 2015/12 2016/12 2017/12

Revenue 378,523 295,596 229,987 191,182NetProfit 5,422 5,824 21,012 19,454

TotalAsset 348,447 354,464 333,249 321,165

NetAsset 109,631 114,983 134,609 148,387

Shareholding Structure (2018/4/1)

14.86%(2nd Largest)

3.15%

M itsuiO ceanD evelopment andE ngineeringC ompany

Mitsui & Co., Ltd

Mitsui E&S Holdings Co.,

Ltd.

MODEC

50.1%(Largest)

6. MODEC - Strategic Partner for FPSO/FSO Business -

Company Name MODEC, Inc.Capital 30,122.49 million yenNo. of Employees* 157 (Consolidated: 4,065) * Including contract employeesMain Business** Own, Operation and EPCI of FPSO, FSO, FLNGs, TLPs, Semi-Submersibles,

Mooring Systems and new technologies which will meet the challenges of oil and gas production floaters.

** FPSO : FPSO - Floating Production, Storage and Offloading systemFSO : Floating Storage and Offloading systemFLNG : Floating LNGTLP : Tension Leg Platform

Source: MODECs web page.

http://www.modec.com/jp/index.htmlhttp://www.modec.com/jp/index.html


As of May 2018Time Charter (Own & Operate)

Under Operation 14 units 11 FPSOs3 FSOs

Under Construction 3 FPSOsContract Terminated 1 FPSO

BrazilTime Charter

FPSO Guanabara MV31

FPSO Carioca MV30

FPSO Cidade de Campos dos Goytacazes MV29

FPSO Cidade de Caraguatatuba MV27

FPSO Cidade de Itagua MV26

FPSO Cidade de Mangaratiba MV24

FPSOCidade de So Paulo MV23

FPSO Cidade de Angra dos Reis MV22

FPSO Cidade de Santos MV20

FPSO Cidade de Niteri MV18

FSO Cidade de Maca MV15

FPSOCidade do Rio de Janeiro MV14

Southeast AsiaTime Charter

FSORang Dong MV17

FSORong Doi MV12

West Africa

Time Charter

FPSO Baobab Ivoirien MV10

FPSO Prof. John Evans Atta Mills

OceaniaTime Charter

FPSOMODEC Venture 11

Contract terminatedFPSOStybarrow Venture MV16

PetrobrasTartaruga

Verde FPSO

PetrobrasSpia FPSO

7. Mitsui FPSO/FSO Projects

9

PetrobrasMero FPSO

Investment in FPSO Charter Projectsfor Petrobras in BrazilAgenda1.Core Business of the Infrastructure ProjectBusiness Unit2. Activities in offshore Oil & Gas infrastructure sector3. Project Outline4. What is FPSO?5. BusinessEnvironment6.MODEC -Strategic Partner for FPSO/FSO Business -7.Mitsui FPSO/FSO Projects

investment in fpso charter projects for petrobras in brazil · 3 power balanced portfolio of 9.3gw...

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