Brazil's Oleo e Gas May oil output falls 2.5 pct from April

RIO DE JANEIRO, June 12 Thu Jun 12, 2014 11:50am EDT

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RIO DE JANEIRO, June 12 (Reuters) - Average daily oil output at bankrupt Brazilian oil company Oleo e Gas Participacoes SA fell 2.5 percent in May compared with April, according to data released by the company on Thursday, reducing the volume of oil available to pay for its restructuring.

Total output from the company's two producing offshore fields east of Rio de Janeiro was 424,464 barrels, or an average of 13,692 barrels a day (bpd). That compares with 421,287 barrels, or an average 14,043 bpd, in April.

On June 3, creditors of Brazilian tycoon Eike Batista's Oleo e Gas, formerly known as OGX Petroleo e Gas Participacoes SA, approved a restructuring plan for the oil company that could lead to a quick resolution of the largest bankruptcy in Latin America's history.

The plan was approved by creditors holding 90 percent of the Rio de Janeiro-based company's nearly 12 billion reais ($5 billion) of unpaid obligations. The plan awaits a judge's approval. Transfer of control from Brazilian tycoon Eike Batista, who owns 51 percent, to creditors is expected to occur by October.

Output from Tubarao Martelo and the nearby Tubarao Azul, as well as future output from the Atlanta and Oliva fields southwest of Rio, will be the key to keeping the company afloat and allowing it to expand after restructuring, company officials said.

Despite higher total output in May, average daily output was lower because May has 31 days and April only 30. Average daily output is the most common way to report oil output and compare the performance of oil companies.

Oleo e Gas only provided total monthly production figures in their statement. Reuters calculated the average daily production levels from those monthly totals.

Rio de Janeiro-based Oleo e Gas's Tubarao Martelo field produced 9,712 bpd in May, 1.7 percent less per than the 9,877 bpd recorded in April. The field produced a total of 301,062 barrels of oil in May

Output from Tubarao Azul fell 4.4 percent to 3,981 bpd in May compared with 4,165 bpd in April. Total output at Tubarao Azul was 123,407 barrels in May. (Reporting by Jeb Blount; Editing by Jonathan Oatis)

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