Brazil's Oleo e Gas says offshore oil output falls in February

RIO DE JANEIRO Thu Feb 13, 2014 7:38pm EST

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RIO DE JANEIRO Feb 13 (Reuters) - Bankrupt Brazilian oil company Oleo e Gas Participações SA said on Thursday that average daily output from wells in its Tubarão Martelo offshore oil field fell 13 percent in the first week of February compared with the average in January.

Output from two wells in the field, its only source of oil and gas revenue, was 9,830 barrels a day between Feb. 1 and Feb. 8, the company said in a statement. That is 1,520 barrels a day less than the 11,350 barrel a day average for January.

Oil output is expected to generate between $26.7 million and $66 million a month in oil and gas revenue through December, enough to cover operations and pay interest on up to $215 million of restructuring loans agreed to by creditors earlier this month, the company said.

Oleo e Gas, once known as OGX Petroleo e Gas Participações SA and controlled by Brazilian tycoon Eike Batista, filed for Latin America's largest ever bankruptcy protection on Oct. 30. Under the agreement Batista will yield control of the company to his creditors. (Reporting by Jeb Blount; Editing by Bernard Orr)

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