UPDATE 1-Batista's OGX starts oil production in Tubarão Martelo -filing
(Rewrites throughout, adds importance of field to bankruptcy filing, field output, financial detail, background, share prices)
By Jeb Blount
RIO DE JANEIRO Dec 6 (Reuters) - Brazil's OGX Petróleo e Gas Participações SA, controlled by former billionaire Eike Batista, started oil output from an offshore field in what is considered a last chance to generate cash and convince creditors to accept a reorganization plan.
OGX shares rose 10.5 percent to 0.21 reais after output from the Tubarão Martelo east of Rio de Janeiro was confirmed in a securities filing on Friday. That would be their highest close since the company filed for bankruptcy protection on Oct. 30.
Rio de Janeiro-based OGX and its creditors are close to a deal to transform some of the company's $5.1 billion in debt into stock, Reuters reported on Tuesday.
In 2012, lower-than-expected output from OGX's first offshore field, Tubarão Azul, prompted a more than 98 percent plunge in the company's stock and the meltdown of Batista's industrial empire, once valued at about $60 billion.
In 2014, Tubarão Martelo is expected to produce about 17,000 barrels a day of oil from six wells and generate about $645 million in gross sales, based on report by Dallas-based oil resource certification company Degolyer & MacNaughton.
Production is being handled by the OSX-3, a floating production, storage and offloading vessel anchored in the field and connected to its undersea wells.
The OSX-3, owned by Batista-controlled shipbuilder and shipleaser, OSX Brasil SA, captures and processes output from the field until can be transshipped to tankers for delivery to customers.
OSX, which depends on OGX for nearly all its present and future revenue, has also filed for bankruptcy protection. Its shipleasing unit, which owns the OSX-3, was not included in the filing, though.
OSX is in talks with holders of $500 million in bonds sold to finance the construction of the OSX-3 in Asia, looking to delay an interest payment due Dec. 20, three sources with direct knowledge of the situation told Reuters.
A group of creditors that own about 95 percent of the debt, which matures in 2015, may waive the $11.6 million payment under certain conditions, said two of the sources, who requested anonymity because of the sensitivity of the issue. OSX filed for bankruptcy protection on Nov. 11 after failing to get debt relief from creditors.
One of the conditions is that OSX give up control, but not ownership, of the OSX-3 to a captain and crew under the control of creditors, a third source added. OSX declined to confirm whether the talks were taking place. (Reporting by Jeb Blount and Caroline Stauffer; Editing by Lisa Von Ahn)
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