OGX Says $850M Petronas Deal May End Up in Arbitration

Reuters

SAO PAULO, Oct 31 (Reuters) - OGX Petróleo e Gas Participações SA, the beleaguered Brazilian oil company controlled by former billionaire Eike Batista, said on Thursday it expects to end up in arbitration over a deal struck with Malaysian state oil company Petronas.

The day after filing for bankruptcy, OGX said in a securities filing that it had struck a deal with Petronas in the middle of this year for which it should have received about 1.9 billion reais ($869 million).

"That effectively has still not happened and will probably generate an arbitration process to resolve the issue," OGX said in a statement signed by Chief Executive Paulo Simões.

The companies announced the deal, originally valued at $850 million, in May. Petronas was to take a stake in two offshore Brazilian oil blocks, potentially throwing a lifeline to Batista as he sold off parts of his industrial empire to pay down debts.

OGX sought court protection from creditors on Wednesday in Latin America's largest-ever corporate bankruptcy filing.



WHAT DO YOU THINK?


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.


Most Popular Articles