This project update provides information on the Açu Industrial Complex located in Rio de Janeiro, Brazil. Key points include:
- The 90km2 industrial complex will include areas for platform construction, module construction, dry dock facilities, and administrative buildings.
- Construction is underway, with licensing obtained in early 2011 and initial construction starting in late 2011.
- OSX is constructing several FPSO and production units for the OGX fields through 2014. The first FPSO, OSX-1, will be delivered in 3Q 2011.
- Infrastructure at the Açu complex like quays, buildings and utilities will be delivered in phases through 2014 to support integration and operation of the FPSO
3. AÇU INDUSTRIAL COMPLEX
A New Cluster for the Offshore and Heavy Industry
GE
90 km² Industrial Complex (1.5 x larger than ManhattanManhattan)
90 km² Complexo Industrial (1,5x maior que a ilha de Island)
4. UCN AÇU: LAYOUT
Platform construction
area
Jacket assembly
area Module construction
area
Dry dock
and ETS Green Curtain
Industrial unit ETA
Administrative
FPSO buildings
Quays
Administrative
buildings with LEED
Electricity Substation Certification (US Green
345 kV – 13.8 kV Building Council)
90 km² Complexo Industrial (1,5x maior que a ilha de Manhattan)
5. UCN AÇU: LICENSING SCHEDULE
Preliminary Installation
EIA/RIMA Public License License Beginning of
Filling Hearings Issuance Issuance Construction
P
Oct-10
P
Jan-11
P
Feb-11
P
Jun-11
P
Jul-11
6. UCN AÇU: SHIPBUILDING UNIT SCHEDULE
PACKAGES PROCUREMENT MOBILIZATION
REMOVAL OF VEGETATION 2Q11 P 2Q11 P
PREPARATION OF THE TERRAIN 3Q11 P 3Q11 P
NORTH QUAY AND JACKET'S AREA 1Q12 1Q12
DRY DOCK 1Q12 1Q12
SOUTH QUAY AND RESPECTIVE RETRO AREA 1Q12 1Q12
INDUSTRIAL BUILDINGS 3Q11 P 4Q11 P
UTILITIES AND INFRASTRUCTURE 3Q11 P 3Q11 P
ADMNISTRATIVE BUILDINGS (LEED) 1Q12 1Q12
AUXILIARY BUILDINGS (NON-LEED) 1Q12 1Q12
ELECTROMECHANICAL ASSEMBLY 1Q12 2Q12
SUPERVISION SUPPORT 2Q11 P 2Q11 P
CONSTRUCTION SITE 3Q11 P 3Q11 P
BREAKWATER 1Q11 P 1Q11 P
DREDGING 3Q11 P 3Q11 P
7. 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 - 3r d QUARTER -
SLOT 4 FOR FPSO INTEGRATION - 4th QUARTER -
SLOT 5 AND 6 FOR FPSO INTEGRATION - - 2nd QUARTER
COMPLETION OF CONSTRUCTION OF UCN - - 2nd QUARTER
8. 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 from US$ + 2% to US$ + 4% per year
Lending Agents: BNDES, Caixa Econômica Federal, Banco do Brasil, BNB
and Banco da Amazônia
9. UCN AÇU: FINANCING
Capex distribution per year/activity
14,4% 63,6% 20,1% 1,9%
2011 2012 2013 2014
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 OF
TOTAL $1.714 $219 US$ 1,933 MM
20. FPSO OSX-1: CREW
Total of 89 crew members
Age Years of Experience
4%
14% 20 to 30 years 19%
30 to 40 years Less than 20 years
28%
40 to 50 years 49% 20 to 30 years
26%
50 to 60 years Greater than or equal
to 30 years
32%
Greater than or equal
to 60 years
28%
22. OSX-2 / WHP-1 SYSTEM
OSX-2 WHP-1
Milestone Date Milestone Date
Arrival of hull at Keppel shipyard
(Singapore) 3r d Quarter 2011 Start of construction and assembly 4th Quarter 2011
P&IDs approved for construction 2nd Quarter 2011 Load Out of WHP-1 3r d Quarter 2013
FPSO departure from yard 2nd Quarter 2013
Construction Contract Construction Contract
■ EPCI contract signed with SBM ■ Signing of LOI with Techint – 1Q11
■ Acquisition of VLCC – accomplished ■ Start of Engineering – 1Q11
Long term debt commitment ■ Contract signed with Techint
■ LOI for Drilling Package signed with TTS
■ Facility agreement entered into lead by ING, Itaú-BBA and
Santander: US$ 850 million (12 years, LIBOR +4,41% p.a.)
■ Other financial institutions participating in the syndicate : HSBC,
Citibank, ABN Amro Bank, Banco do Brasil, NIBC and DnB Nor
■ Debt/Equity structure : 80/20
24. OSX-3 / WHP-2 SYSTEM
OSX-3 WHP-2
Milestone Date Milestone Date
th th
Arrival of hull at conversion shipyard 4 Quarter 2011 Start of construction and assembly 4 Quarter 2011
st th
P&IDs approved for construction 1 Quarter 2012 Load Out of WHP-2 4 Quarter 2013
rd
FPSO departure from yard 3 Quarter 2013
Construction Contract Construction Contract
■ Acquisition of VLCC - accomplished ■ Signing of LOI with Techint – 1Q11
■ EPCI contract signed with MODEC ■ Start of Engineering – 1Q11
■ Contract signed with Techint
Long term debt commitment
■ Financing: 1st half 2012
25. 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
Milestone Date
Preparation Stage: engineering project for Specifications for hull
1st Q2012
conversion of the hulls conversion
End of hull conversion 4th Q2012
Integration UCN Açu : 2Q2013 marking the start-up
of UCN Açu’s activities Arrival of hull at UCN slot 1 2nd Q2013
Delivery at UCN Açu in 2Q2014 Delivery by the shipyard 2nd Q2014
26. FPSO OSX-5
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
Milestones Date
Preparation Stage: engineering project for
conversion of the hulls Specifications for hull repair 2nd Q2012
Integration UCN Açu : 3Q2013 marking the start-up End of hull conversion 2nd Q2013
of UCN Açu’s activities Arrival of hull at UCN slot 2 3rd Q2013
Delivery at UCN Açu in 4Q2014 Delivery by the shipyard 4th Q2014
29. PROJECT ACCELERATORS
Standardization of Equipment
Maximize competitiveness through standardization of production units
Reach 70% of standardization of units (plant and deck)
Signature of long-term contracts with suppliers
Key Systems Sept/11 Other Systems Feb/11
Water injection Water harvesting
Cargo handling Compressed air
Energy generation Fire Fighting System
Gas compression Tubing and Accessories
Offloading System Load pump
Supervisory System Ballast pumps
Anchoring and Turret System
30. PROJECT ACCELERATORS
OSX Flex Engineering
Advantages
Modules can be removed without damaging the project
Capable of treating a range of oil specifications
Potential gain: 5 months in the engineering phase
Status
Contract signed with Chemtech-Kromav-Exactum
First OSXflex units: OSX-4 and OSX-5
MIN MAX MIN MAX MIN MAX
API RGO LDA
32. ITN- INSTITUTE OF NAVAL TECHNOLOGY
Objectives
Qualification of up to 3,100 personnel in 23
functions by the end of 2012
Use of SENAI’s facilities and faculty in the city of
Campos, as well as mobile units in São João da SENAI Macaé
Barra. Macaé in the future
Scholarships providing financial assistance, food and
SENAI Campos
transportation
Estimated budget: R$ 12.7 million
SENAI São João da Barra
33. ITN- INSTITUTE OF NAVAL TECHNOLOGY
Phase I: Qualification and Training
Approx.
City Work force Population
distance
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
Curriculum planning
Adapting the necessary facilities
Classes scheduled to commence in 1Q2012
Organization and production of teaching material
34. ITN Phase II: Training at UCN Açu
40 specialists from Hyundai based in Brazil for 5 years
50 employees from UCN Açu to be trained at Hyundai’s
shipyard in Ulsan, South Korea (4 groups from August 2012
through April 2014)
Construction of ITN at UCN Açu, with an area of approximately
1.800 m2
Facilities for workshops, labs, classrooms, auditorium and
library
Implementation of systems for simulation of operations and
offshore units
35. Phase III- Supply Chain Strengthening
Identification of suppliers that have the potential to develop
new materials, equipment, and innovative work methodologies,
focused on OSX’s potential demand
Phase IV- Technological Innovation
Establish partnerships with Brazilian and international academic
institutions, focused on the development and assimilation of
new technologies
36. Next Milestones
First Oil OGX – January 2012
Beginning of construction: WHP-1 and WHP-2
Financing: OSX-3, WHP-1 and WHP-2
Contract shipyard to convert the OSX4 and OSX5 hull’s
Shipyard financing contract (Merchant Marine Fund)
New orders from OGX
Orders from third parties