Bloomberg News

Former OGX Chief Leaves Batista Holding After Lowered Targets

August 29, 2012

Paulo Mendonca, who led Eike Batista’s OGX Petroleo & Gas Participacoes (OGXP3) in its first oil production projects, has left the Brazilian billionaire’s holding company EBX Group Co., where he served as an adviser.

Batista replaced Mendonca as OGX’s chief executive in June, after the company cut output targets by as much as 75 percent, appointing him special adviser at EBX. Mendonca has now left the holding company, the company’s press department said in an e- mail late yesterday.

Mendonca didn’t answer calls seeking comment.

OGX shares fell the most in two months yesterday after the second top management replacement since June. Exploration Director Paulo dos Santos is stepping down to take a position at EBX and will be replaced by Paulo Guimaraes, who previously managed OGX’s Campos Basin fields, OGX said in a statement before the opening of regular trading hours in Brazil yesterday.

OGX, based in Rio de Janeiro, dropped 8.4 percent to close at 6 reais in Sao Paulo yesterday, the most since June 28. The stock has lost 56 percent this year.

Veja magazine in Sao Paulo reported Mendonca’s departure earlier yesterday.

To contact the reporter on this story: Juan Pablo Spinetto in Rio de Janeiro at jspinetto@bloomberg.net

To contact the editor responsible for this story: James Attwood at jattwood3@bloomberg.net


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