August Investor Presentation

Transcription

1 August 2013 Investor Presentation

2 Agenda QGEP Overview Experienced Leadership Team Balanced Portfolio Major Producing Asset Strong Financial Position Strategic Growth Plans

3 STRONG FOOTPRINT IN THE OIL&GAS SEGMENT OF THE QUEIROZ GALVÃO GROUP The QG Group DRILLING SHIPPING E&P EPC FPSO ENGINEERING Largest Brazilian oil & gas services company with top notch efficiency performance Largest shipyard of the Americas Largest private sector E&P company based on annualized daily production of boe. One of the first companies to acquire blocks in the exclusive pre salt areas One of the leading EPC providers in Brazil SBM partnership, leader in FPSO s One of the largest engineering companies in Brazil with a historical track record Sponsorship of the Queiroz Galvão Group, one of the largest conglomerates in Brazil with an extensive footprint of 30 years across the Oil & Gas industry Consolidated Group Net Revenues of R$ 8.7 billion in 2012 Arms length transaction between the Group s companies INVESTOR PRESENTATION P. 3

4 LONGEST OIL & GAS TRACK RECORD IN BRAZIL 1980 Queiroz Galvão Perfurações S.A. founded in April Initiated E&P business 1999 Awarded the first E&P concession blocks 2000 Discovery of Manati field 2003 First Oil in Coral Field 2010 Start of QGEP 2007 First gas in the Manati Field 2011 QGEP IPO Two farm ins: BM-S-8 and BS Farm in BM-C-27 Concession Carcará Discovery (BM-S-8) blocks acquired at the 11th ANP Bidding Round INVESTOR PRESENTATION P. 4

5 Agenda QGEP Overview Experienced Leadership Team Balanced Portfolio Major Producing Asset Strong Financial Position Strategic Growth Plans

6 EXPERIENCED LEADERSHIP TEAM Technical team includes 42 highly qualified professionals International experience in Libya, Iraq, Angola, Nigeria, USA, Colombia, Bolivia, among others Vast experience in Brazil s most important basins Active involvement in important discoveries in Brazil, GoM and West Africa, such as Roncador, Marlim Complex, Albacora, Barracuda, Piranema, Tiber, Akpo, Agbami, among others Development of challenging fields: Cascade, Chinook, Cottonwood, among others INVESTOR PRESENTATION P. 6

7 Agenda QGEP Overview Experienced Leadership Team Balanced Portfolio Major Producing Asset Strong Financial Position Strategic Growth Plans

8 BALANCED & DIVERSIFIED PORTFOLIO OF ASSETS -1 st independent Brazilian Oil & Gas company to operate in pre-salt premium area - 1 producing field: Manati - 3 Fields Under Development Atlanta, Oliva and Camarão Norte - 3 Discoveries and 1 Potential Discovery Extension Carcará, Bem-Te-Vi, Copaíba and Abaré Oeste - 14 Concessions in 9 different Brazilian basins - Operator of 7 Concessions, 6 in the exploratory phase and 1 in the development phase INVESTOR PRESENTATION P. 8

9 BLOCKS AWARDED IN THE 11 th ANP BIDDING ROUND 8 blocks acquired at the 11 th ANP Bidding Round, distributed across 5 different basins encompassing a total of 5,785 km 2 Basin Block Other Consortium Members Operator QGEP Working Interest Operatorship in 5 of the 8 blocks Foz do Amazonas FZA-M-90 Premier Oil Pacific Brasil QGEP 35% 5 new partnerships including: Statoil, Total, Premier Oil, Pacific Rubiales and Petra Energia Total of R$94.9 million in signature bonuses Approximately US$30-40 million net to QGEP is expected to be expensed for the acquisition of 3D seismic data over the next two years Drilling of at least four exploratory wells, which are expected to begin drilling in 2017, estimated at US$200 million net to QGEP Espírito Santo Espírito Santo Pará- Maranhão Pará- Maranhão Ceará Pernambuco -Paraíba Pernambuco -Paraíba ES-M-598 ES-M-673 Statoil Brasil Petrobras Statoil Brasil Petrobras Statoil 20% Statoil 20% PAMA-M-265 Pacific Brasil QGEP 30% PAMA-M-337 Pacific Brasil QGEP 50% CE-M-661 Total OGX Total 25% PEPB-M-894 Petra Energia QGEP 30% PEPB-M-896 Petra Energia QGEP 30% INVESTOR PRESENTATION P. 9

10 PROLIFIC SANTOS BASIN More than 15 billion barrels already discovered here Concentrated area for a majority of Petrobras future investments Multi-Play Basin: Post-salt (sandstones and carbonates), Pre-salt (sandstones, biolitites and fresh water carbonates) Presence of high quality oil Important discoveries include: Lula, Iara, Carioca, Libra, Franco, Jupiter, Sapinhoá, Atlanta and Carcará INVESTOR PRESENTATION P. 10

11 BM-S-8: MAJOR COLUMN OF AT LEAST 471 METERS OF OIL OF 31 API AT CARCARÁ PROSPECT Contingent and Prospective Resources 10% stake Revised Evaluation Plan at the Block, already approved by the ANP includes: Data obtained at Carcará prospect showed a major column of at least 471 meters of 31 API oil exclusive of any contaminants such as CO 2 and H 2 S At least 402 meters are microbial carbonate connected reservoirs Reservoirs with excellent permeability and porosity High potential flow rate estimated in Carcará Drilling of an appraisal well for Carcará in 4Q13 followed by the performance of a Drill Stem Test One well at the Guanxuma prospect, which is expected to be drilled in 2014 An additional well is contingent on the results of ongoing studies in the Block The Operator s development schedule for Block BM-S-8 calls for drilling of production wells at Carcará in with first oil by the end of 2018 INVESTOR PRESENTATION P. 11

12 BS-4: OPERATORSHIP IN DEEP WATERS Atlanta and Oliva post-salt fields with heavy oil ranging from 14º to 16º API QGEP: Operator and 30% stake Located within the Blue Picanha, a high pre salt exploratory potential region, located close to the discoveries of Libra, Franco, among others Since receiving ANP approval in December 2012 for the Atlanta Field Development Plan, QGEP has moved ahead with preparations for the EPS: Advanced negotiations to secure a rig to allow drilling in the 2H13, with first oil to be extracted by 2015 through two horizontal wells Services providers for the Field include world class companies such as Baker, Cameron, GE, Weatherford, among others The Company is awaiting ANP approval for the Development Plan of the Oliva Field INVESTOR PRESENTATION P. 12

13 ATLANTA AND OLIVA FIELDS Field Fluid Volumes in place (millions of barrels) Recoverable Volumes (millions of barrels) Recovery Factor (%) Atlanta Oil 1, % Oliva Oil % FPSO Specifications Contract Type: Leasing Expected contract signing: Early 2014 Characteristics Minimum liquid capacity: 30,500 bbl/d Minimum oil capacity: 25,000 bbl/d Water treatment capacity: 8,000 bbl/d Gas compression system: 180,000 m³/d Slots for 3 production wells Anchoring: Spread Mooring or Single Point Mooring (Turret) P. 13

14 Flow Rate for Oil Production (kbbl/d) Accumulated Oil Production (Mbbl) FLOW RATE: EXPECTED OIL PRODUCTION (2 WELLS) Flow Rate for Oil Production (Upper Limit) Flow Rate for Oil Production (Lower Limit) Accumulated Oil Production (Upper Limit) Accumulated Oil Production (Lower Limit) Time (Years) 0 P. 14

15 EMERGING CAMAMU AND JEQUITINHONHA BASINS Similar geological context Includes both post-salt and pre-salt targets Sandstones and potentialy carbonate reservoirs Previous discoveries in the Basins include: Pinaúna (oil), Sardinha (oil and gas), Manati (gas), and Camarão/ Camarão Norte (oil and gas) INVESTOR PRESENTATION P. 15

16 BM-J-2: RESULTS EXPECTED BY 3Q13 100% stake and Operator 2 Prospects: Alto de Canavieiras: 29% of GCOS Alto Externo: 24% of GCOS Risked Prospective Resources: 94.2 million boe (Blended Case) In July 2013, the Company restarted drilling at the Alto de Canavieiras (JEQ#1) prospect in Block BM-J-2 with the jack-up rig, P-VI from Petrobras Previously drilled to a depth of 2,540 meters, the JEQ #1 prospect will be drilled to a final depth of approximately 4,700 meters The Company expects to reach the final depth by the end of the 2013 third quarter Drilling interrupted at 2,540 m INVESTOR PRESENTATION P. 16

17 Agenda QGEP Overview Experienced Leadership Team Balanced Portfolio Major Producing Asset Strong Financial Position Strategic Growth Plans

18 STRONG AND SOLID PRODUCTION AT MANATI FIELD Largest shareholders of the Manati Field = 45% working interest Partners: Petrobras : 35% (Operator) Panoro: 10% Brasoil: 10% Gasene SALVADOR 3P Reserves : 57.7 million boe* Manat i Cam arão Norte N W E S KM QGEP s Gas Fields Valdemir Ferreira Gas Treatment Plant Petrobras Blocks Statoil Blocks *Dated 2Q13 INVESTOR PRESENTATION P. 18

19 INCREASED PRODUCTION AT MANATI FIELD Based on our current visibility, we expect full year 2013 production capacity at the Manati Field to average MMm³ per day In order to maintain these levels, it will be necessary to construct a surface compression plant to boost the reservoir energy and assist in the delivery of gas to the treatment plant. Construction of the plant will begin in 2014 and will be completed by that end of that year. As a result, QGEP is forecasting 2014 production of 5.0 to 5.5 MMm 3 per day, returning to approximately 6.0MMm 3 per day in Daily Gas Production (MM m 3 per day) 5,9 5,6 6,6 6,7 4,1 3,5 4,2 4,7 5,2 6,6 6,7 6,1 6,6 5,0 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 Average 2010: 6.2 MM m 3 per day Average 2011: 4.1 MM m 3 per day Average 2012: 6.1 MM m 3 per day Average 6M13: 5.8 MM m 3 per day INVESTOR PRESENTATION P. 19

20 Agenda QGEP Overview Experienced Leadership Team Balanced Portfolio Major Producing Asset Strong Financial Position Strategic Growth Plans

21 QGEP S FINANCIAL PERFORMANCE Gas Production (Millions of m 3 ) Net Revenue (R$ million) CAGR: -0.3% 1.017, ,6 675,1-2.3% 482,2 471,0 CAGR:+9.2% 387,5 289,0 462,3 +5.9% 219,1 232, M12 6M M12 6M13 EBITDAX (R$ million) Net Income (R$ million) 350,0 300,0 250,0 200,0 150,0 100,0 50,0 301,2 78% 285,1 90% 80% 62% 64% 70% 60% 103,6 52% 50% 140,5 119,6 40% 30% 36% 20% 100% 160,0 140,0 120,0 100,0 80,0 60,0 40,0 20,0 0,0 38% 65,9 148,0 32% 92,1 18% -12% 41% 95,9 50% 40% 30% 20% 10% 0% -10% 0, M12 6M13 10% 0% -20,0-40,0-26, M12 6M13-20% EBITDAX Margin Net Margin INVESTOR PRESENTATION P. 21

22 EXPECTED CAPEX CAPEX net to QGEP (1) CAPEX net to QGEP (1) (US$ million) (US$ million) (2) (2) Signature Bonus Round 11 Development BS -4 Development Blocks Round 11 BM-J-2 BM-CAL-12 Exploration Other BM-S-8 BS-4 Piapara BM-S-12 Other (1) Does not include the compression plant at the Manati Field (2) US$ 30 million was already spent up to June 30, 2012 INVESTOR PRESENTATION P. 22

23 STRONG NET CASH POSITION Investment Distribution At the end of 2Q13, cash balance was over R$1 billion In 2Q12, the Company eliminated all of its debt, following the total repayment of the BNDES and BNB loans linked to the Manati Field development Cash is invested in dedicated funds and fixed income assets, mostly in reais BNB 15% Banco do Brasil 13% Caixa Econômica 13% Governmen t Securities 30% Bradesco 9% Itaú 10% Votorantim 6% Santander 3% Other 1% Ratings * AA 6% AAA 94% *Does not include Government Securities INVESTOR PRESENTATION P. 23

24 Agenda QGEP Overview Experienced Leadership Team Balanced Portfolio Major Producing Asset Strong Financial Position Strategic Growth Plans

25 LOOKING AHEAD: MAJOR MILESTONES 2013 Drilling at JEQ#1 Prospect underway Resources Certification Report BS-4: Horizontal well to be drilled - EPS for Atlanta Field BM-S-8: Drilling of the Carcará appraisal well 2014 BS-4: Development of the Atlanta Field Drilling of the Piapara pre-salt prospect BM-S-8: Appraisal well and test results from Carcará Drilling of Guanxuma prospect Drilling at the Ilha Bela well and CAM#01 (Além-Tejo) prospects First Oil from the Atlanta Field Development of Carcará: Extended Well Test in 2015 Exploratory wells at the Blocks awarded at the 11 th ANP Bidding Round Exploratory Drilling at Copaíba and Guanabara Profundo First oil expected from Carcará INVESTOR PRESENTATION P. 25

26 BUILDING A BALANCED PORTFOLIO OF PRODUCING & EXPLORATORY ASSETS Exploration-focused growth strategy Building a portfolio looking to the mid and long-term Technical team of highly-skilled professionals with extensive experience across a number of basins, both in Brazil and abroad Presence in both producing and frontier basins, with a focus in Brazil: Offshore deepwater Balance between operated and nonoperated assets Ambitions to be amongst the top 3 largest producing Brazilian oil & gas companies by 2020 INVESTOR PRESENTATION P. 26

27 CONTACT US Investor Relations QGEP Participações S.A. Av. Almirante Barroso, nº 52/sala 1301, Centro, Rio de Janeiro, RJ CEP: Phone - IR: Fax: ri@qgep.com.br INVESTOR PRESENTATION P. 27

28 DISCLAMER This document contains some statements and information about the Company that reflect the current views and/or expectations of the Company and its managers with regard to its activities. These include all statements containing forecasts and projections or that indicate or imply future results, performance or achievements, which may include such words as "believe", "predict", "expect", "contemplate", "will probably result", or any other words or expressions of similar meaning. Such statements are subject to a series of expressive risks, uncertainties and assumptions. Readers are warned that several important factors may lead actual results to significantly diverge from the plans, targets, expectations, estimates and intentions expressed herein, there can be no assurance that the Company will achieve or is likely to achieve the future results or projections contained herein. Under no circumstances shall the Company or its directors, officers, representatives or employees be liable to any third parties (including investors) should they make decisions, investments or business acts based on information and statements presented herein, nor shall the Company be liable for any indirect damages, loss of profit, or similar consequences thereof. The Company does not intend to provide shareholders with any revised versions of the statements or analysis of differences between the statements and actual results. This presentation does not contain all the necessary information for a complete investment assessment on the Company. Investors must produce their own assessments, including the associated risks, before making an investment decision. INVESTOR PRESENTATION P. 28