ogx management presentation
TRANSCRIPT
MANAGEMENT PRESENTATION
Rio de Janeiro | June 2012 |
AGENDA
1
2
3
4
OGX Overview
OGX Portfolio and Execution
OGX Operations
Financial Overview
Appendix
Last update: 06/14/2012
OGX OVERVIEW
1
Highly successful and experienced management team, combining unique intellectual capital and
superior execution skills
Overall exploratory success rate exceeding 85% with high productivity reservoirs amongst the best in
Brazil
World class E&P portfolio, mostly in shallow waters and onshore (low cost and off-the-shelf technology)
OGX is among the largest pure E&P companies globally
Proven execution capability (from concept to oil in an unprecedented timing) with fully established
operations comprising more than 6,000 people
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 90 wells spud since the beginning of
its exploratory campaign in Sep. 2009)
Brazil‟s historical under-exploration underpins massive growth opportunities for OGX
OGX OVERVIEW
4
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$4.1 bn raised
Aug/09
Jun/10
Bond: US$ 2.6bn raisedBeginning of the
drilling campaign
Acquisition of 70% stake in the Parnaíba Assets
Apr/11
Survey and interpretation of the 3D seismic data
Procurement of all equipment and services necessary to initiate the drilling campaign
May/11
5 onshore blocks acquired in Colombia
Sep/11
Mar/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)
Oct/11
Jan/12
Arrival of FPSO OSX-1
Total investments of US$ 4.3bn of
Drilling Capex and Signature Bonus +
US$ 245 M of Seismic Campaign
Total cash raised to date: US$9.4 bn
1st Oil
New Bond: US$ 1.1bn raised
OGX OWNERSHIP AND CORPORATE STRUCTURE
Free Float
26 Blocks
5 - Campos (100%) (2)
2 - Campos (70%) (2)
5 - Santos (100%) (2)
5 - Espírito Santo (50%)
5 - PAMA (100%) (2)
4 - Colombia (100%) (2)
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 May 31, 2012(4) MPX S.A. holds 33.33%
Petróleo e Gás Participações S.A.(Market Capitalization (3): ~ US$16 Billion)
Petróleo e Gás Ltda
Maranhão Petróleo e Gás S.A.
Average daily traded volume (1 month): ~ US$150 million
~ 35 thousand investors
3rd most representative stock in Ibovespa index 5.4%
One of the most liquid common shares
61%¹ 39%
99.99% 66.67%4
100%
International
OGX Austria
100.00%
100%
6
100%
MANAGEMENT ORGANIZATION STRUCTURE(1)
Paulo Mendonça (38)
CEO
Joaquim Dib Cohen (32)Oil & Gas Commercialization
Paulo Ricardo (28)Exploration and Reservoir
Officer
José Roberto FaveretGeneral Counsel
Roberto MonteiroCFO
Reinaldo Belotti (34)Production Officer
Armando Ferreira (31)Production Development
Olavo Foerch (32)Procurement
Ricardo Juiniti (27)Drilling and Completion
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
Paulo de Tarso Guimarães (34)Exploration Campos & ES
Roberto Toledo (31)Reservoir & Reserves
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 of experience in the E&P industry
Marcos Amaral (28)Applied Technology
Luiz Reis (45)Strategic Alliances
Nilton MonteiroStrategic Alliances
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 9 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
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
0 10 20 30 40
Bn Boe
Brazil
Turkmenistan
Iran
Kazakhstan
China
Russia
Australia
Kuwait
Israel
Saudi Arabia
India
Indonesia
Venezuela
Papua
New Guinea
Ghana
+ 35 bn boe
265
172
138
115
102
100
98
74
44
40
37
33
28
27
15
14
13
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&GPROD.(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 Volumes
2000 – 2010 (Bn boe)
Vast Untapped Oil & Gas Potential
OGX PORTFOLIO AND EXECUTION
2
PO
RTFO
LIO
Deep water~1,000m
Shallow water~150m
Shallow water~120m
Shallow water~60m
OGX PORTFOLIO
34 blocks: 30 blocks in 5 Brazilian sedimentary basins and 4 onshore blocks in 2 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
Oil discoveries of 4.1 bn bbl are already under production development in the shallow waters of Campos Basin
OGX PORTFOLIO POTENTIAL
73%ShallowWater
8%Deep
Water
19%Onshore
79% Oil
21% Gas
Portfolio Breakdown
12
Breakdown
D&M Certified Volumes (Bnboe)
Note:
1 Does not include Parnaíba 3C contingent resources of 141 million boe
10.8
C1(4%)0.1
C2(19%)
0.6C3 (77%)2.33.0
1.3
4.8
6.7¹6.5
Mar-08 Sep-09 Dec-10
Contingent Delineation Prospective
CAMPOS BASIN
OGX’s Discovered Accumulations Confirm a New Hydrocarbon Province
in the Southern Campos Basin
~400 MM bbl already declared
commercial (Tubarão Azul and
Tubarão Martelo Fields)
7 blocks operated by OGX
Total area of 1,177 km2
Average water depth of ~120m
65 wells drilled
Up to 90% of success rate
Campos Basin
13
Low Risk, Shallow Water And Large Volumes
Areas Update– Not including pre-salt and exploratory prospects
CAMPOS BASIN
14
Highlights
Successful appraisal campaign with 36 wells
drilled and a 92% hit ratio
Important new discovery in 1Q12
Itacoatiara, in block BM-C-39 which will be part of the Waikiki Complex
Acquisition of incremental 20% participation
of blocks BM-C-37 and BM-C-38 from Maersk,
with OGX becoming the operator
Declaration of Commerciality of the Waikiki
accumulation and Development Plan (DP)
submitted to the ANP
To be named as Tubarão Martelo Field
with expected total recoverable volume
of 285 MMbbl
Presentation of the Declaration of
Commerciality for a portion of the Waimea
Complex
To be named as Tubarão Azul Field with
expected total recoverable volume of
110 MMbblSource:
Area estimates based exclusively on OGX‟s studies
Waikiki ComplexWaimea / Pipeline and Vesuvio Complexes
TUBARÃO AZUL FIELD (1ST MODULE)
OGX-3 Albian: 80mAptian/Barrem: 50m N.A.
OGX-21D/OGX-26HP Albian: 14mN.A.
OGX-50D/OGX-55HP Santonian: 1,7mAlbian: 52m
1C
OGX-53D/OGX-60HP Albian: 71m 1C
OGX-65D/OGX-68HP Albian: 97m 1C
15
Waimea Complex – Not including pre-salt and exploratory prospects
TAMBORA
OGX-52 Santonian: 5mAlbian: 96m
N.A.
OGX-58DP - N.A.
OGX-75 Albian: 49m N.A.
OGX-81 Albian: 62m N.A.
ILLIMANI
OGX-28D Albian: 24m N.A.
OGX-43D Albian: 50m Del.
OGX-61 Albian: 9m 3C
TUPUNGATO
OGX-20 Maastrich: 9m & 3mAlbian: 50mAptian: 42m
N.A.
OSORNO
OGX-31 Albian: 48mAptian: 23m
N.A.
OGX-73 Albian: 37m N.A.
FUJI
OGX-8 Albian: 43mAptian: 44m
N.A.
OGX-56D Albian: 60m 3C
OGX-69 Albian: 38m 3C
CHIMBORAZO
OGX-33 Albian: 42m N.A.
Waimea Complex¹
WELL UNDER EVALUATION
OGX-54 Albian: 24m Del.
Note:
1 Figures in “meters” illustrate net pays of oil columns
2 Discovered after D&M „s Dec 2010 contingent resources report
CAMPOS BASIN
Source:
Area estimates based exclusively on OGX‟s studies
TUBARÃO MARTELO FIELD
OGX-25 Eocene: 8m (gas)Albocenomaniano: 145m
N.A.
OGX-35D Albocenomanian: 80m 3C
OGX-41D/OGX-44HP
Albian: 92m2C
16
INGÁ
OGX-18 Santonian: Oil ShowsAlbian: 12m (oil column) N.A.
OGX-62 Albocenomanian: 20mSantonian: 26m
2C
OGX-64DP Santonian: 23m 3C
OGX-67 - 3C
OGX-71 - 3C
ITACOATIARA
OGX-79 Albian: 64m N.A.
PERÓ
OGX-14 Albian: 35m & 27m N.A.
OGX-76² Albian: 6m 2C
Waikiki Complex¹WELLS UNDER EVALUATION
OGX-45D Maastrich: 5m Del.
OGX-29/32 Oil Shows N.A.
Waikiki Complex – Not including pre-salt and exploratory prospects
CAMPOS BASIN
Source:
Area estimates based exclusively on OGX‟s studies
Notes:
1 Figures in “meters” illustrate net pays of oil columns
2 RJS-15 well drilled by Petrobras
PIPELINE
OGX-2A Eocene: Oil showsCretac: Oil showsAlbian: 100mAptian: 50mBarremian: 15m
N.A.
OGX-36D/OGX-39HP
Albian: 60m3C
OGX-40D Albian: 107m 2C
OGX-42D Eocene: 6mAlbian: 82m
3C
OGX-48 Albian: 12m 3C
OGX-70 - 3C
OGX-72 Albian: 129m 3C
OGX-80³ Albian: 51m N.A.
17
SANTA HELENA (PIPELINE)
OGX-15 Albian: 32mAptian: 31m
N.A.
ETNA (PIPELINE)
OGX-6 Albian: 74mAptian: 17m
N.A.
Pipeline Complex¹
CARAMBOLA
MRK-5 Albian: 17m N.A.
RJS-105² Albian: 150m N.A.
CARAMBOLA A (PIPELINE)
MRK-3 Santonian: 14mAlbian: 43mAptian: 12m
N.A.
Pipeline Complex – Not including pre-salt and exploratory prospects
CAMPOS BASIN
Source:
Area estimates based exclusively on OGX‟s studies
Notes:
1 Figures in “meters” illustrate net pays of oil columns
2 RJS-15 well drilled by Petrobras
3 Discovered after D&M „s Dec 2010 contingent resources report
VESUVIO
OGX-1 Eocene: 57m N.A.
OGX-9D Eocene: 60m 1C
OGX-13 Eocene: 10m 1C
18
KRAKATOA
OGX-5 Maastrich: Oil showsAlbian: 30mAptian: 20m
N.A.
KILAWEA
OGX-4 Eocene: 17m N.A.
Vesuvio Complex¹
POTOSI (VESUVIO)
OGX-37 Oil Shows N.A.
Note:
1 Figures in “meters” illustrate net pays of oil columns
Vesúvio Complex – Not including pre-salt and exploratory prospects
CAMPOS BASIN
Source:
Area estimates based exclusively on OGX‟s studies
CAMPOS BASINProduction in the Tubarão Azul Field
19OGX First Oil Flowing Since January/12 Through EWT
Electricalsubmersiblepump
BuoyOSX-1
Risers andUmbilicals
Flexiblelines
WetchristmastreeOGX-26HP
Wet christmastreeOGX-68HP
Wet christmas tree
Main characteristics:
OGX-26HP and OGX-68HP under production
3rd production well to be connected by 2012
4th producer well to be connected by 2013
2 injection wells planned
1st by 2012
2nd by 2013
Oil quality of 20° API
Water depth of 140 meters
Wet christmas tree
CAMPOS BASIN
Dec 23,
2011
Concluded the connection of
the flexible lines to the
detachable turret
Sep 16,
2011
Granting of the
preliminary and
installation license
by IBAMA
Sep 17,
2011
Beginning of the subsea
installation (piles,
moorings and MWA)
Dec 19,
2011Flexible lines launched
and connected to the
wet christmas tree
Dec 25,
2011
FPSO OSX-1 sets sail
from the port of Rio de
Janeiro
Jan 31,
2012
FPSO OSX-1 begins
production
Jan 12,
2012
Connection of the FPSO
OSX-1 to the turret
Dec 18,
2009
Discovery of
Waimea OGX-3Oct 4,
2011
Arrival of the
FPSO OSX-1 in
Rio de Janeiro 1st
Oil
20
From Discovery to 1st Oil in Waimea
CAMPOS BASIN
21
FPSO OSX-1 Operational Efficiency
Tested production levels between 5-18 kbpd since beginning of
production
1st well, OGX-26HP, on-stream since Jan/31
2nd well, OGX-68HP, on-stream since May/15
After EWT results, intend to adopt a stable flow rate
Besides water injection technology should also use chemical
hydraulic fracturing and other well known techonologies in the
industry to optimize production
Production in the Waimea Complex
Average Monthly Production (kboepd)
11.6
10.4
9.1
Feb-12 Mar-12 Apr-12
95%
99%100%
Feb-12 Mar-12 Apr-12
CAMPOS BASIN
2222
OSX-2 and OSX-3 Production Schematic
Main characteristics:
OSX-2: 1st oil expected for 2H13
OSX-3: 1st oil expected for 2H13
4 subsea wells connected to each FPSO
Oil quality: 20-28° API
Water depth: ~120 meters
OSX-2/OSX-3
Flexible lines
WHP-1/WHP-2
Dry christmas tree
Wet christmas tree
CAMPOS BASIN
23
1st oil expected for 2H13
EPC: MODEC
Shipyard: Jurong Shipyard (JSL) – Singapore
Technical specifications:
Production capacity: 100 kbbl/day
Storage capacity: 1.3 Mboe
OSX-2 and OSX-3 Engineering Status
OSX-2 Overview OSX-3 Overview
1st oil expected for 2H13
EPC: Single Buoy Moorings Inc (SBM)
Shipyard: Keppel Fels - Singapore
Technical specifications:
Production capacity: 100 kbbl/day
Storage capacity: 1.3 Mboe
Both FPSOs Underway and On Schedule, Constructed in Top Tier Shipyards
FPSOs WHPs
OSX-1:
Production capacity of 60 kbpdand storage of 950 kbbl
Average Day rate of US$ 263 k
Arrived in Oct/11
First oil in Jan/12
OSX-2:
Production capacity of 100 kbpd and storage of 1.3 Mbbl
Expected Average day rate of US$ 360 k
Contracted by OSX with SBM
Expected delivery: 2H13
OSX-3:
Production capacity of 100 kbpd and storage of 1.3 Mbbl
Expected Average day rate of US$ 360 k
Contracted by OSX with MODEC
Expected delivery: 2H13
WHP-1:
Capacity to drill up to 30 wells
Equipment on-stream by the 1H14
Detailed engineering ongoing (EPC awarded to Techint by OSX)
WHP-2:
Capacity to drill up to 30 wells
Equipment on-stream by 1H14
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
2424
WHP-3 and WHP-4:
Order placed for charter and construction with OSX
Both WHPs will be built in the AçuSuperport
Santos Basin is One of The Most Promising Exploratory Areas in Brazil, With Significant Potential For Gas and Light Oil
5 blocks operated by OGX (100%
owned)
Total area of 769 km²
Average water depth of ~150 m
11 wells drilled
Pre-salt potential in shallow
waters (OGX-63)
Up to 70% success rate
Santos Basin
SANTOS BASIN
25
High Potential
SANTOS BASIN
Encouraging Results From 3 Drill-stem Tests Confirm Emergence of a New Oil, Gas and Condensate Center in The Region
Exploratory Campaign
2010 Activities
MRK-2B
OGX-11D
OGX-12
OGX-17
OGX-19
2011 Activities
OGX-23
OGX-24
OGX-30
OGX-47
OGX-63
Maceió (OGX – 47)
Gas and condensate (~20% with approx.
50° API)
AOF production potential results:
Vertical well: 1.0M m³/day of gas
Horizontal well: 2.5M m³/day of
gas
Natal (OGX-11D)
Gas and condensate (~25% with approx. 47° API)
AOF production potential results:
Vertical well: 1.0 M m³/day of gas and 1.2K bbl/day of condensate
Horizontal well: 5.0M m³/day of gas and 6K bbl/day of condensate
Drill-stem Tests Performed
26
2012 Activities
OGX-74
Illustrative
Positive Drill-Stem Test Results
Natal (OGX-74)
Light oil (38º API) confirmation
Sandstone reservoirs (Santonian age)
4 km distant from OGX-11D
Drill-stem Test for Fluid Identification
SANTOS BASIN
27
Highlights Albian Gas Interval
Aptian Interval
Good porosity
Dolomitized layers with open fractures
MDT Dual-Packer Test collected 47º
API hydrocarbons
Pore
Dolomitized microbial
Connected vugular porosity
Light oil/condensate shows
Oil
Pre-salt Discovery In Shallow Waters
Albian reservoir
Approximately 1,000 meters of column and 110 meters of net pay
Good permoporosity and fractures
Shallow waters Pre-salt (Aptian reservoir)
Drilled up to 6,135 meters and thus far identified column of 150 meters
1st microbiolite Pre-salt discovery in shallow waters in Brazil
Same reservoir rock in pre-salt as only seen so far in deep and ultra-deep waters in the Santos and Campos Basins
Strong kick in the last drilled layer of the reservoir with shows of hydrocarbons
New Frontier Basin With High Potential For Gas Production
1.1 Tcf (~200MM boe) already declared commercial (Gavião Real and Gavião Azul Fields)
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 (12 wells drilled)
Parnaíba Basin
PARNAÍBA BASIN
28
Major Gas Province
Gavião Real
Gavião Azul
Legend:
Seismic Lines
PARNAÍBA BASIN
29
More than 20 prospects identified
Initial production expected in 2H12
Available production capacity of up to ~6 M m³
per day in 2013
Gas to be sold to MPX Power Plants
MPX has obtained installation license of 3,722 MW
3 seismic crews working on the site
3 rigs operating simultaneously: 2 focused on the
production development and 1 for exploration
2 additional rigs contracted, one completion rig
and one for exploration, both expected in 1H12
Parnaíba Complex
Business Plan
Project 11st gas: 2H12
PARNAÍBA BASIN
30
MPX + PetraOGX Maranhão (70%) + Petra (30%)
Parnaíba Development SchematicGas 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
Capex
Total drilling cost:
US$ 340 M
Total facilities1
cost: US$ 110M
Opex field life
Less than US$
0.30/1,000 cubic
feet
30
Short Gas Pipeline(<2 km)
CAMPO DE GAVIÃO REAL
Poços
de p
rodução
Gasoduto2 x 18" - 4,1 km
Manifold de
produção
Gasoduto2 x 12" - 11,7 km
CAMPO DE GAVIÃO AZUL
Poços
de p
rodução
Manifold de
produção
SITE DA MPX
Planta de
Tratamento
UTE
Transferência de
custódia
Filtragem, controle e
medição
Recebimento, separação
e tratamento
Site UTG OGX Site UTE MPXManifold
Pro
du
cti
on
w
ell
s
GTU TPP
Project Development
PARNAÍBA BASIN
31
Execution Highlights
Project Development
Environmental permits already granted (LP+LI)
7 producing wells already drilled and 2 wells in
progress
Drilled and tested the first production well GVR-1
Production potential of 5.0 M m³/day (AOF)
EPC contracted for the construction of the gas processing facility
Awarded to Valerus-Geogas
Civil engineering work advanced and on schedule
Prepared Gas Treatment Unit (GTU) site, with earthmoving at advanced stage
Launching of pipelines connecting the clusters to the GTU
Production expected to begin in the 2H12 with the commissioning of the GTU and the turbines
Commercial production expected to start in January 2013
Ongoing Works
The New Frontier of Espírito Santo Has Proven to be a Very Active Petrolific System With Recent Important Discoveries in Neighboring Blocks
5 blocks operated by Perenco
(50% owned)
Total area of 3,620 km²
Average water depth of ~1,000 m
Espírito Santo Basin
ESPÍRITO SANTO BASIN
32
New Frontier In Deep Water
New Frontier With Geological Model Similar to West Africa, Where Significant Discoveries Were Made Recently
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
33
Promising New Frontier
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
4 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 2012
Colombian Basins
COLOMBIA
34
Cesar-Ranchería and Lower Magdalena Valley Great Upside Potential
OGX OPERATIONS
3
EXPLORATION DRILLING CAMPAIGN
Ocean Lexington (Diamond):
Daily Rate: US$ 270k
Max. well depth: 20,000 ft
Contract Expires: Feb.2013
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$ 265k
Max. well depth: 25,000 ft
Contract expires: Dec.2013
ENSCO 5002 (Ensco)
Daily Rate: US$ 220k
Max. well depth : 20,000 ft
Contract Expires: Nov.2013
Ocean Star (Diamond):
Daily Rate: US$ 300k
Max. well depth: 25,000 ft
Contract Expires: Feb.2014
ENSCO 5004 (Ensco):
Daily Rate: US$235k
Max. well depth: 20,000 ft
Contract Expires: Nov.2013
Offshore Drilling Onshore Drilling
36
WILDCAT+APPRAISAL WELLS 2009 2010 2011 2012 2013 TOTAL
Campos 5 18 31 12 2 68
Santos 1 6 3 4 1 15
Espírito Santo 0 0 2 1 2 5
Pará-Maranhão 0 0 0 2 3 5
Parnaíba 0 2 8 6 8 24
Colombia 0 0 0 1 3 4
Total 6 26 44 26 19 121
BCH-05E (BCH):
Daily Rate: US$ 32k
Max. well depth: 11,500 ft
Contract Expires: May 2012
QG-1 (Queiroz Galvão):
Daily Rate: US$ 34k
Max. well depth: 14,750 ft
Contract Expires: Fev.2013 (+ one optional year)
BCH-012 (BCH):
Daily Rate: US$ 33k
Max. well depth: 13,800 ft
Contract Expires: March 2015 (+ one optional year)
Two additional rigs contracted (Tuscany):
One completion rig
One rig for exploration
Both expected in 1H12
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 WATER
ANCHOR 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: ~350 employees
Over 6,000 people dedicated
3D Room / IOSC
EFFICIENCY,
AGILITY AND
OPERATIONAL
SECURITY
37
4FINANCIAL OVERVIEW
STRONG CASH POSITION
Solid cash position of R$ 6.6 billion, or US$ 3.6
billion, to support exploration commitments,
development and initial production:
US$ 2.2 billion invested in offshore deposits
US$ 1.063 billion raised through a bond issue
in March 2012
Cash allocation in R$: R$ 2.6 billion (~40%)
Average cumulative gross return equivalent to
103.08% of the Interbank Deposit Rate (CDI), or
10.6% p.a.
Cash Allocation in US$: US$ 2.2 billion (~60%)
Average cumulative gross return equivalent to 1.72%
p.a.
Cash position in fixed income instruments allocated to most
solid financial institutions
R$ Billion
Cash Position Evolution Cash Allocation
39
0,0
2,0
4,0
6,0
8,0
4Q11 JAN FEB MAR
Cash in R$
Bradesco27%
Itaú Unibanco20%HSBC
15%
Votorantim12%
Morgan Stanley10%
BTG Pactual6%
Santander5%
CS4%
Others1%
HIGH PROFITABILITY ON FPSO OSX-1 OPERATIONS
40
EWT Economics¹1st Cargo Delivered to Shell
Gross Revenue of R$ 118.0 million and EBITDA of R$ 56.4million, reflecting the asset‟s high value
EWT already profitable with only one well in production
Economies of scale will dilute costs per barrel
More wells on stream this year
Majority of costs are fixed: logistics, leasing and
operations
Sale of 1st Cargo
Extended Well Test
1st cargo (offloaded on 03/28/12) - in barrels (bbls) 547,376
R$ ('000)
Gross Revenue¹ 118,003
Sales taxes -
Royalties (10,687)
Leasing (24,078)
OSX Services (13,944)
Logistics (12,005)
Others (871)
EBITDA 56,418
% EBITDA / Gross Revenue 47.81
EBITDA / barrel - (R$/barrel) 103.07Note:1 Refers to the 51 days period (from beginning of production to 547 kbbls)
APPENDIX
ONGOING ACTIVITIES
1OGX Maranhão has 70% W.I
Well Block Accumulation Rig Coast Distance Water Depth Status Net Pay
CC OGX-78 BM-C-43 Honolulu ENSCO 5002 99 km 320m In progress since 03/25
CE OGX-79 BM-C-39 Itacoatiara ENSCO 5004 89 km 102m In progress since 04/04 Albian: 64m
CI OGX-63A BM-S-57 Fortaleza Ocean Quest 102 km 155m In progress since 04/29
CJ GVR-9 PN-T-68¹ Gavião Real BCH-12 Onshore Block In progress since 05/14
CK OGX-82 PN-T-85¹ Fazenda São Francisco BCH-5 Onshore Block In progress since 05/18
CL OGX-83D BM-C-41 Tupungato – 1D Ocean Lexington 86Km 132m In progress since 05/22
CM OGX-84 BM-C-40 Ingá-4 Ocean Ambassador 96 km 107m In progress since 05/31
CN GVR-10D PN-T-68¹ Gavião Real QG-1 Onshore Block In progress since 06/02
OGX Blocks Oil & Gas Fields
PARNAÍBA BASINCAMPOS BASIN SANTOS BASIN ESPÍRITO SANTO BASIN
42
CONCLUDED WELLS (1 OF 6)
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 Vesúvio 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
43
CONCLUDED WELLS (2 OF 6)
4444
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-18A 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 134m Albian: 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
CONCLUDED WELLS (3 OF 6)
¹ OGX Maranhão has 70% W.I. ² OGX has 50% W.I. and Maersk is the operator 45
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-35D 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 - 2D Ocean Lexington 90 Km 110m Albian: 92m
AN OGX-40D BM-C-41 Pipeline - 2D 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 - 1D 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 - 3D Pride Venezuela 78 km 120mEocene: 6mAlbian: 82m
AW OGX-50D BM-C-41 Waimea – 3D Sea Explorer 84 Km 131mSantonian: 1.7mAlbian: 52m
CONCLUDED WELLS (4 OF 6)
¹ OGX Maranhão has 70% W.I. ² OGX has 50% W.I. and Maersk is the operator 46
Well Block Accumulation Rig Coast Distance Water Depth Net Pay
AR OGX-45D BM-C-40 Waikiki – 3D 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-68¹ Califórnia - 2DP QG-1 Onshore Block Devonian: 8m
AV OGX-49 PN-T-68¹ 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-68¹ 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-49¹ 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-68¹ Gavião Real QG-1 Onshore Block Development well
BF OGX-61 BM-C-41 Illimani – 2 Ocean Ambassador 87 Km 124m Albian: 9m
CONCLUDED WELLS (5 OF 6)
¹ OGX Maranhão has 70% W.I. ² OGX has 50% W.I. and Maersk is the operator ³ Waiting for a new rig 4OGX has 50% W.I. and Perenco is the operator 47
Well Block Accumulation Rig Coast Distance Water Depth Net Pay
BJ OGX-66 PN-T-67¹ Angical BCH-05 Onshore Block -
BI OGX-65D BM-C-41 Waimea – 4D ENSCO 5002 83 km 135m Albian: 97m
BG OGX-64DP BM-C-40 Ingá – 1DP Ocean Lexington 93 km 105m Santonian: 23m
BM PERN-1 BM-ES-374 Moriche Ocean Star 52 km 1,148m -
BP OGX-69 BM-C-41 Fuji - 4 ENSCO 5002 81 km 125m Albian: 38m
BN GVR-3D PN-T-68¹ Gavião Real QG-1 Onshore Block Development well
BO GVR-2D PN-T-68¹ Gavião Real BCH-05 Onshore Block Development well
BQ OGX-70 BM-C-41 Pipeline - 5 Ocean Lexington 80 km 123m -
AY OGX-60HP BM-C-41 Waimea – 2D ENSCO 5004 84 km 132m Albian: >1,000m (horizontal section)
BH OGX-63³ BM-S-57 Fortaleza Ocean Quest 102 km 155mAlbian: 110mAptian: 150m (column)
BL OGX-67 BM-C-40 Ingá - 2 Ocean Ambassador 93 km 111m -
BS OGX-71 BM-C-40 Ingá - 3 Ocean Ambassador 93 km 112m -
BX OGX-73 BM-C-41 Osorno – 1 Ocean Ambassador 78 km 130m Albian: 37m
BT GVR-4D PN-T-681 Gavião Real QG-1 Onshore Block Development well
BR PERN-2 BM-ES-384 Guarapari Ocean Star 110 km 823m -
BU GVR-5D PN-T-681 Gavião Real BCH-05 Onshore Block Development well
BV OGX-72 BM-C-41 Pipeline – 7 Ocean Lexington 78 km 130m Albian: 129m
BZ GVR-6D PN-T-68¹ Gavião Real QG-1 Onshore Block Development well
BI OGX-68HP BM-C-41 Waimea – 4HP ENSCO 5004 83 km 135mAlbian: > 1,000m (horizontal section)
CONCLUDED WELLS (6 OF 6)
¹ OGX Maranhão has 70% W.I. ² OGX has 50% W.I. and Maersk is the operator ³ Waiting for a new rig 4OGX has 50% W.I. and Perenco is the operator 48
Well Block Accumulation Rig Coast Distance Water Depth Net Pay
CA OGX-76 BM-C-40 Peró - 1 Ocean Lexington 96 km 103m Albian: 6m
BY OGX-75 BM-C-41 Tambora – 3 Ocean Ambassador 86 km 130m Albian: 49m
CB OGX-77 PN-T-85¹ Fazenda Axixá BCH-05 Onshore Block Devonian: 2m
BW OGX-74 BM-S-59 Natal – 1 Ocean Quest 115 km 196m Santonian: 6m
CD GVR-8D PN-T-68¹ Gavião Real BCH-12 Onshore Block Development well
CG OGX-80 BM-C-41 Pipeline – 6 Ocean Lexington 76 km 128m Albian: 51m
CH OGX-81 BM-C-41 Tambora – 2 Ocean Ambassador 87 km 139mEocene: 6mAlbian: 62m
CF GVR-7DA PN-T-68¹ Gavião Real QG-1 Onshore Block Development well
TPPs
TPP Maranhão III
PARNAÍBA BASIN
Revenue 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 contract
50% take-or-pay)
(by Jan/1315 year contract0% take-or-pay)
(MPX and Petra)
TPPMaranhão
IV + V
Future Projects
Gas Producers
49
Gas Sale Contract with MPX