* Production down by around 1.5 pct from Aug
* No output in main offshore field for second month
* OGX considering all options to protect assets, stay in
RIO DE JANEIRO, Oct 10 Brazil's OGX Petróleo e
Gás SA, the cash-strapped oil company controlled by Brazilian
tycoon Eike Batista, produced around 1.5 percent less oil and
gas in September than the month before, with none from its main
offshore oil field.
The company said on Thursday that it churned out an average
of 13,200 barrels of oil and gas a day in September. OGX had no
output from its main offshore field of Tubarão Azul in August
either, the result of broken sea-floor pumps.
Tubarão Azul has had lower-than-expected output since it
began production in early 2012. OGX expects to shut the field in
2014, years ahead of schedule. The field's poor performance led
to a more than 90 percent decline in OGX stock in the past year.
That decline also prompted similar declines in the stock of
other companies in Batista's EBX mining, oil, energy, port and
All of OGX's September output came from its 67 percent share
in the Gavião Real field in the Parnaiba Basin in Brazil's
northeastern state of Maranhão. Nearly all of that output from
Gavião Real, an average of 4.5 million cubic meters a day, was
Another 2.1 million cubic meters was natural gas liquids.
The production amount in barrels for September converts the
amount of gas into its equivalent value in oil.
Batista's shrinking fortune made him unable to continue
financing EBX companies including OGX, most of which are
start-ups or new companies with very little revenue. In the face
of a cash crunch, Batista is attempting to reorganize his group
and has given up control of several of his traded companies.
OGX is considering all options protect assets and stay in
business, the company said Oct. 4. It recently put off payment
of some of its debts and is in talks with investors on how to
honor $3.6 billion of bonds.
Its bonds trade at less than 10 cents on the
dollar and are rated as likely to default by major ratings
agencies. A default would result in the largest-ever corporate
debt restructuring in Latin America.
OGX shares rose 4.8 percent to 0.22 reais in São Paulo
trading on Thursday.