Brazil's OSX Gets $850MM Loan to Finance Second Oil Platform

RIO DE JANEIRO (Dow Jones Newswires), Oct. 26, 2011

Brazilian oilfield services company OSX Brasil obtained an $850 million loan to finance its purchase of the company's second offshore oil production platform, the company said Wednesday.

OSX will pay the London interbank overnight rate, or Libor, plus 4.41% over the 12-year term of the loan, the company said in a regulatory filing.

The floating production, storage and offloading vessel, or FPSO, will be leased for 20 years to sister company OGX Petroleo e Gas Participacoes, producing oil for billionaire Brazilian businessman Eike Batista's independent driller by mid-2013. Both OGX and OSX are controlled by Batista.

The FPSO, dubbed "OSX-2," will be installed in the Campos Basin at OGX's Waimea prospect, OSX said. "OSX-2" will have the capacity to produce 100,000 barrels of crude a day.

The syndicate of banks was led by ING, Itau-BBA and Santander, with HSBC, Citibank, ABN Amro Bank, Banco do Brasil and NIBC also participating, OSX said.

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