Brazil Regulator to Mull Revoking Block Rights of Batista Oil Company
RIO DE JANEIRO, Jan 27 (Reuters) - Brazil's ANP oil regulator said on Monday it would decide over the next 60 days whether to revoke the exploration rights for blocks controlled by Oleo e Gas Participacoes SA, the ailing oil company of Brazilian industrialist Eike Batista.
The regulator said it had received documents from Batista's company and will be evaluating the financial capacity of Oleo e Gas to meet its timeline for investing and developing exploration blocks.
Batista's company could lose the rights to blocks in Espírito Santo state if it fails to meet capital spending commitments.
The company is behind in spending on drilling in offshore blocks ES-M-472, ES-M-529 and ES-M-531, which it is developing with its partners, Perenco SA and Sinochem International Corp , said a source, who declined to be quoted because of the sensitivity of the issue.
Oleo e Gas, formerly known as OGX Petroleo e Gas Participacoes SA, filed for a $4.75 billion bankruptcy restructuring process on Oct. 30, but it is still required to show that it has the capacity to meet the exploration timetable agreed to with ANP.
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.
Operates 1 Offshore Rigs
- Reports: Offshore Gas Worker Dies in North Sea Incident (Dec 07)
- BP: Potential Gas Play Could Open Up New Phase of North Sea Development (Dec 06)
- Golar, Perenco Reach Agreement on Commercial Terms of Cameroon FLNG Project (Jul 01)
Company: Sinochem more info
- China's Sinochem Ties Up With Private Chemical Group In Oil Trading (Jan 10)
- Sinochem Names Zhang Wei As General Manager (Nov 07)
- Statoil Awards Wood Group Contracts for Brazil's Offshore Peregrino Project (Sep 22)
Company: OGX more info
- AziLat Acquires OGX's Stakes in 2 Blocks Offshore Brazil (Oct 19)
- Brazil's Oleo e Gas to Cut 40% of Workforce (Jan 22)
- Brazil Regulator to Mull Revoking Block Rights of Batista Oil Company (Jan 28)