Current and future Brazilian heavy lift, offshore and subsea installation markets

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1 Offshore Construction, Heavy Lift & Pipelay Conference Amsterdam, 2015 Current and future Brazilian heavy lift, offshore and subsea installation markets Leonardo Roncetti TechCon Engineering & Consulting Source: akersolutions.com FPSO Cidade de Marica at Brasa Shipyard

2 Offshore Construction, Heavy Lift & Pipelay Conference TechCon Engineering & Consulting Offshore Lifting Design and Consulting Lifting design for offshore operations Dynamic simulation of transport and installation for subsea operations Seafastening design Design of marine operations Structural design and check 3D animation of lifting operations Third party design review Expert witness Strengthening of offshore structures with carbon fibre Training Crane accident investigation Source: akersolutions.com

3 Offshore Construction, Heavy Lift & Pipelay Conference TechCon Engineering & Consulting Lines of Research Software for coupled dynamic analysis for offshore lifting: + environmental loads + Ship + Crane + CFD Simulation for lifting of personnel Strengthening of structures with carbon fibre Reliability applied to offshore lifting operations Source: akersolutions.com

4 World scenario of oil & gas production Ultra deepwater expectancy Offshore Magazine, January 14, 2015

5 Current scenario of oil & gas exploration in Brazil Current proven reserves and forecast for Proven Reserves (Bboe) Source: ANP, 2015 Oil Natural Gas Balance Imports/Exports (Jan-mar/2015) Oil 399 thousand barrels/day Gas 47,6 million m 3 /day Proven Reserves Oil 16.2 billion barrels Gas 471 billion m 3 Near Future: x2 * Considering only discoveries already made, especially in the pre-salt area.

6 Current scenario of oil & gas production in Brazil Brazilian oil production, Brazilian Oil Production: Source: ANP, ,0 Production (Feb./2015) Oil and NGL 2.53 million barrels/day Gas 95.4 million m 3 /day Near Future: x2 Million Barrels per day 2,5 2,0 1,5 1,0 0,5 0,0 Total_Oil Offshore_Pre-Salt Offshore_Post-Salt Onshore

7 Current scenario of oil & gas production in Brazil Production by operators (boe) for June, 2015 Source: ANP, 2015 Petrobras, 2777k Shell, 77.1k Statoil, 71.9k OGX, 15.9k Chevron, 14.2k Others, 12.6k Offshore; 93% Onshore; 7% Oil; 80% Gas; 20%

8 PETROBRAS Business & Management Plan investments Source: PETROBRAS, (3%) 11.3 (10%) 4.9 (5%) 89.4 (82%) Exploration & Production Production Development Operational Support Exploration Investments Abroad Focus in Increase revenue Pre-salt DW & UDW

9 PETROBRAS Business & Management Plan forecast for increase of oil & gas production July 2015: 1 Mbpd, record 50% from pre-salt pre-salt well highly productive need to drill around 300 development wells in deepwater BMP BMP Million boed

10 Offshore projects in Brazil that are or will demand lifting operations PETROBRAS Business & Management Plan Production Units Start-up Schedule

11 Offshore projects in Brazil that are or will demand lifting operations ODEBRECHT to Delivery the first FPSO to Libra in The FPSO will be based in the giant, Petrobras-operated Libra field, offshore Brazil, at a water depth of approximately 2,500 meters. The consortium between McDermott and a consortium partner has been awarded the SURF engineering, product supply and installation scope for the Atlanta Early Production System (EPS) in the Santos Basin offshore Brazil by Brazilian exploration and production company Queiroz Galvão Exploração e Produção S.A. (QGEP). Subsea 7 S.A. has won a $200 million two years long contract with Petrobras in Brazil. The contract is for the installation of flexible lines for Petrobras projects using Subsea 7 s construction and flex-lay vessel Seven Seas, on a day-rate basis.

12 Offshore projects in Brazil that are or will demand lifting operations Technip has been awarded a contract from Tupi BV, a consortium composed of Petrobras Netherland BV, BG and Galp, for the ongoing development of the Lula Alto field, located in the Santos Basin pre-salt area, Brazil. This contract covers the supply of around 200 kilometers of flexible pipes and associated equipment, including gas lift, gas and water injection, gas export and production lines. Statoil to install a WHP at Peregrino Field. Plan of development was submitted to Brazilian authorities in January 2015 and the production is expected to start in the end of the decade. Petrobras launches tenders for Santos basin floaters. Proposals are for chartering of FPSOs for Libra and Sepia in December 2015.

13 Offshore projects in Brazil that are or will demand lifting operations Some Dutch companies to invest in Brazil: Shell, SBM Offshore, Boskails, Dockwise, Atlas Professionals, Veth Propulsions, Loggers, Netherlands Maritime Technology, Zaroni Advocados, Control Union and Ampelmann. The P-76 FPSO unit is currently undergoing conversion from a VLCC tanker. Once completed it will be installed at the Franco Sul Field located in the Santos Basin pre-salt area offshore Brazil. The FPSO is expected to produce 150,000 barrels of oil and 7 million cubic meters of gas per day. Agreement between Petrobras and SeteBrasil guarantee the building of 19 rigs.

14 HEAVY LIFT VESSEL DEMAND - forward-looking PETROBRAS Decommissioning program for platform and subsea equipment From 1970 to 2000, only 7 fixed platforms were decommissioned Average age of fixed platforms: > 25 years Most of them with life cycle expired Hundreds of subsea equipment to be decommissioned Petrobras funded a study of subsea decommissioning practices High pressure from environmental authorities Decom designs should start next year

15 HEAVY LIFT VESSEL DEMAND - forward-looking Brazilian 13 th Bidding Round 13th Bidding Round to happen October approved companies 266 exploratory blocks ,9 km² 84 offshore blocks, 10 shallow water None in pre-salt New Bidding Round for pre-salt in

16 Heavy lift vessel demand and availability in Brazil Current fleet in Brazil COMPANY / NAME TYPE CRANE DOF Skandi Chieftain DOF Skandi Commander Deck crane: 1 / 3 / 16 t Offshore crane : 22 t AHC winch: 10 t A-frame: 30 t Deck crane: 1 / 3 t Offshore crane: 10 t AHC winch: 10 t A-frame: 30 t DOF Geograph Deck crane: 1.5 t Offshore crane: 10 / 20 t 1500 / 750 m DOF Geoholm Deck crane: 3 / 5 t Offshore crane: 90 / 100 t 2138 / 1069 m Source: akersolutions.com

17 Heavy lift vessel demand and availability in Brazil Current fleet in Brazil COMPANY / NAME TYPE CRANE / wire length DOF Geosea DOF Skandi Hav Deck crane: 10 t Offshore crane : 30 / 40 t 2000 / 1000 m AHC winch: 30 t A-frame: 10 t / 30t (outward) Deck crane: 2 / 3 / 5 t Offshore crane: 15 t DOF Skandi Neptune Deck crane: 2 x 5 t Offshore crane: 250 t 2489 m DOF Niterói Source: akersolutions.com Deck crane: 3 x 3 t Offshore crane: 250 t 2500 m Offshore crane II: 50 / 100 t 2000 m Tower: OSLT 270 t (VLS)

18 Heavy lift vessel demand and availability in Brazil Current fleet in Brazil COMPANY / NAME TYPE CRANE / wire length DOF Skandi Salvador Deck crane: 3 t Offshore crane : 140 t 2545 m AHC winch: 250 t DOF Skandi Santos DOF Skandi Vitória Subsea 7 Kommandor 3000 Construction / Flex-lay (Horizontal) Deck crane: 2 x 3 t Offshore crane: 250 t 2500 m Deck crane: 2 x 15 t Offshore crane: 250 t 2500 m Offshore crane II: 50 t Tower: IMECA 350 t (VLS) Offshore crane: 2 x 30 t A-frame: 200 t Source: akersolutions.com

19 Heavy lift vessel demand and availability in Brazil Current fleet in Brazil COMPANY / NAME TYPE CRANE / wire length Subsea 7 Normand Seven Construction / Flex-lay (Horizontal) AHC crane: 250 t 2000 m Subsea 7 Seven Condor Horizontal flexlay Main crane: 70 t 2000 m A-frame: 250 t Subsea 7 Seven Mar Construction / Flex-lay Main crane: 300 t 380 m AHC winch: 400 t 2000 m A-frame: 60 t Subsea 7 Seven Phoenix Construction / Flex-lay Main crane: 34.5 t 2000 m A-frame: 60 t Source: akersolutions.com

20 Heavy lift vessel demand and availability in Brazil Current fleet in Brazil COMPANY / NAME TYPE CRANE / wire length Subsea 7 Seven Waves Construction / Flex-lay AHC Crane: 400 t 2500 m Technip Deep Constructor Construction / Flex-lay Main crane: 150 / 300 t 1570 m Petrobras BGL-1 Pipe Carrier / Pipelay Main crane: 1000 t Allseas Solitaire (expected) Pipelay Special crane: 300 t A-frame: 400 t Source: akersolutions.com

21 Offshore Construction, Heavy Lift & Pipelay Conference TechCon Engineering & Consulting COMPANY / NAME TYPE CRANE FARSTAD Far Samson Deck crane: 20 t Main crane: 250 t 3500 m A-frame: 315 t FARSTAD Far Scotia Deck crane: 10 t Main crane: 10 t A-frame: 10 t FARSTAD Far Saga Deck crane: 5 / 20 t Main crane: 25 / 70 / 100 t Locar Locar-pipe Derick / Lay barge Main crane: 250 t Source: akersolutions.com

22 Offshore Construction, Heavy Lift & Pipelay Conference TechCon Engineering & Consulting COMPANY / NAME TYPE CRANE Jurong Shipyard L3602 Sheerleg Main crane: 3600 t 110 m BSL Serviços (Brasa Shipyard) Pelicano 1 Sheerleg Main crane: 2050 t 101 m Source: akersolutions.com

23 Deep and ultra deepwater projects forecast Closing remarks $140 bi 12% udw $17 bi $14 bi $185 bi 3% udw $14 bi $55 bi $70 bi $14 bi Siemens subsea power grid 15% udw $23 bi $30 bi Global deepwater capital expenditure Deepwater projects (> 450 m) Ultra deepwater projects (> 1280 m)

24 Deep and ultra deepwater projects forecast Closing remarks Despite hurricane caused by PETROBRAS Significant investment in ultra deepwater projects Decommissioning by PETROBRAS will demand heavy lift and subsea vessels Some other operators investments 13 th bidding round to attract new offshore shallow and deepwater projects Issues: Trust PETROBRAS B & M Plans Local content requirements Oil world crisis $120 bi 40% udw

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