Bloomberg News

Eike Batista’s OGX, OSX Jump as Oil Starts to Flow: Rio Mover

February 02, 2012

Feb. 1 (Bloomberg) -- OGX Petroleo e Gas Participacoes SA, the oil company controlled by billionaire Eike Batista, rose to the highest in 10 months after saying it started to produce oil. Batista’s shipyard operator OSX Brasil SA also gained.

OGX, Brazil’s second-largest oil company by market value, jumped 5.7 percent to 17.49 reais in Sao Paulo trading, its highest price since April 20. OSX, which provides shipping production equipment to OGX, gained 6.8 percent to 14.35 reais, after rising to 14.05, the highest since Nov. 3.

OGX, based in Rio de Janeiro, started production at the offshore Waimea well in the Campos Basin, which had been delayed since August, the company said late yesterday. OGX today said it will drill more offshore wells in the Santos Basin and may increase estimated reserves in the area, where it has an estimated 1.8 billion barrels of recoverable oil and equivalent.

OSX was created by Batista to provide vessels for OGX and its first ship, the OSX 1, is operating at Waimea. The ship is a so-called floating, production, storage and offloading vessel, or FPSO.

Petroleo Brasileiro SA is Brazil’s biggest oil company by market value.

--Editors: Robin Saponar, Jasmina Kelemen

To contact the reporter on this story: Rodrigo Orihuela in Rio de Janeiro at rorihuela@bloomberg.net

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


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