Brazil's Oleo e Gas says to honor oil field debts
SAO PAULO Jan 2(Reuters) - Brazilian entrepreneur Eike Batista's Oleo e Gas Participacoes SA promised in a securities filing on Thursday to honor its debts in two offshore oil fields with the financial resources it obtained from an agreement with creditors last week.
QGEP Participações SA, Oleo e Gas's partner, said on Monday that the company, formerly known as OGX, could lose its 40 percent stake in the Atlanta and Oliva fields in Brazil's Santos Basin if it fails to pay its share of development costs.
Brazilian oil regulator ANP ordered Oleo e Gas to show that its financial obligations in the fields, part of the BS-4 offshore concession, were up to date.
"The company provided initial clarifications to the ANP about that notification," Oleo e Gas said in the filing. "The installments in overdue capital in BS-4 will be duly honored under the terms agreed on by the parties involved, including with the new resources from the agreement with bondholders."
Oleo e Gas, which filed Latin America's largest-ever bankruptcy protection petition on Oct. 30, owes partners QGEP and Barra Energia do Brasil Petróleo e Gas 73 million reais ($31.2 million).
QGEP and Barra each own 30 percent of the fields south of Rio de Janeiro. The first horizontal production well in Atlanta is expected to start producing in January.
Failure to meet financial commitments related to oil exploration and production concessions can result in the loss of those concessions under Brazilian law.
0leo E Gas Participacoes said it had reached a deal with the majority of holders in a total of $3.8 billion in bonds in a statement released on Dec. 24.
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