Brazil's OGX Gains Production License For Waimea Oil Field

RIO DE JANEIRO (Dow Jones Newswires), Jan. 2, 2012

Brazilian oil and natural gas driller OGX Petroleo e Gas Participacoes SA said Monday it gained an operation and production license that will allow it to start producing oil at the Waimea oil field in Brazil's Campos basin.

Brazil's Federal Institute for the Environment and Renewable Natural Resources, or Ibama, granted OGX a license to operate its FPSO OSX-1 production rig, which will allow it to start a long-duration production test at Waimea as planned on Jan. 23, OGX said in a statement.

The license will also allow the company, controlled by Brazilian billionaire Eike Batista, to further develop oil production at Waimea, located in the BM-C-41 block in Campos basin, off the coast of Rio de Janeiro state.

Waimea's oil will mark the start of oil production by OGX. The company holds 35 oil and gas production concessions, sited mainly in shallow waters offshore Brazil, and potential resources of 10.8 billion barrels of oil equivalent, it said.

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


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