RIO DE JANEIRO Jan 10 Brazil's oil regulator
ANP extended until January 24 a deadline for businessman Eike
Batista's bankrupt Oleo e Gas Participações S.A. to
show that it has the financial viability required to hold on to
off-shore concessions, the company said on Friday.
The company, formerly known as OGX Petroleo e Gas
Participações S.A., filed Latin America's largest-ever
bankruptcy protection petition on Oct. 30. It had requested more
time to fend off creditors and shore up its finances through its
operating contracts and concessions.
The regulator has told the company it can be bankrupt but it
must meet its financial commitments to continue operating the
On Thursday, Oleo e Gas said it had paid part of its debts
in two offshore oil fields with the financial resources it
obtained from an agreement reached with creditors in December.
The company owes partners QGEP and Barra Energia do Brasil
Petróleo e Gas 73 million reais for operations in the Atlanta
and Oliva fields.
QGEP and Barra each own 30 percent of the Santos basin
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 on December 24 that it had
reached a deal with the majority of holders in a total of $3.8
billion in bonds.
Under that agreement, bondholders will lend between $200
million and $215 million of new capital to keep the company
going. In exchange for the loans, bondholders will get 65
percent of the stock in a restructured Oleo and Gas.