Finance & Investing
News Services
Newsletters
Get free industry updates via email.
Daily News
Weekly News
Equipment Updates
Weekly Job Register
Monthly Event Guide
Our privacy
pledge.


advertisement

Brazil OGX's April Oil Output Plummets as Well Repairs Continue

change text size

RIO DE JANEIRO - Brazilian independent oil producer OGX Petroleo e Gas Participacoes SA said Tuesday that crude oil production plunged in April as the company continues to repair equipment at the Tubarao Azul offshore oil field.

OGX produced an average 13,900 barrels of oil equivalent, or BOE, in April, the company said in a statement. The firm produced a meager 1,800 BOE per day from Tubarao Azul, down from 8,300 BOE in March and 11,300 BOE in February.

In March, the firm shut down two of the three production wells at Tubarao Azul for repairs to underwater pumps. One of the wells, OGX-68HP, could be repaired by mid-May, while work on a second damaged pump at the TBAZ-1HP well would begin after that, the firm said.

A third well produced for 14 days in April, with periodic shutdowns necessary to avoid damaging an underwater pump that has been overheating, OGX said.

OGX has had better luck with the Gaviao Real field, which produced the equivalent of 4.1 million cubic meters of natural gas per day total, including shares to OGX's partners. The natural gas is used to fire a nearby power-generation plant, Parnaiba 1, that is generating electricity from four turbines, OGX said.

Disappointing production at Tubarao Azul have undercut OGX's shares since mid-2012 and created doubts about billionaire Brazilian businessman Eike Batista's ability to deliver on his development plans. The troubles at OGX have caused investors to question bets on Mr. Batista's other companies, which span interests as diverse as real estate, mining and shipbuilding.

OGX shares closed Monday at BRL1.97, posting strong gains amid news that the company could be closing in on a deal to sell a stake in a second oil field, Tubarao Martelo, to Malaysian state oil company Petronas for $850 million. Tubarao Martelo is expected to start production in the fourth quarter of this year.

Copyright (c) 2012 Dow Jones & Company, Inc.

WHAT DO YOU THINK?

Post a Comment Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Most Popular Articles
From the Career Center
Jobs that may interest you
Senior Drilling Engineer
Expertise: Drilling Engineering, Petroleum Engineering
Location: Kuala Lumpur
 
Well Engineer ( Planning & Abandonment)
Expertise: Drilling Engineering
Location: Mumbai
 
Flow Assurance Specialist
Expertise: Field Development
Location: Lagos
 
search for more jobs