Bloomberg News

Batista OGX May Delay Output Start Until December on Oil Rig

October 05, 2011

(Adds platform supplier comment in second paragraph and closing stock price in last paragraph.)

Oct. 5 (Bloomberg) -- OGX Petroleo & Gas Participacoes SA, the oil company controlled by Brazilian billionaire Eike Batista, may delay the start of output by another month until December as it waits for a floating production unit.

The rig will arrive in the Rio de Janeiro port tomorrow and will have to pass through customs before heading to the offshore Campos Basin, Luiz Eduardo Carneiro, head of Batista’s OSX Brasil SA platforms supplier, told reporters in the city today. OGX had previously pushed back its plan to start production to November from October because OSX missed an Aug. 1 target to ship the platform from Singapore.

OGX has had 100 percent exploration success in the Campos Basin off the coast of Rio and expects combined output in the country and Colombia to reach 1.4 million barrels a day by 2019, more than half Brazil’s current production.

OGX closed unchanged from yesterday in Sao Paulo trading, at 10.80 reais. It’s down 46 percent this year, more than a 26 percent drop in the benchmark Bovespa index.

--Editors: Carlos Caminada, Jessica Brice

To contact the reporter on this story: Peter Millard in Rio de Janeiro at pmillard1@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net


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