* Expects to increase 2013 spending plan by up to $130
* May sell stake in mature blocks like Tubarao Martelo
RIO DE JANEIRO Dec 11 OGX Petroleo e Gas SA
, Brazil's second-largest oil company by market value,
said on Tuesday that it might sell stakes in older blocks and
fields to raise capital to finance exploration in more promising
The company also expects to increase its 2013 investment
plan by as much as $130 million, or about 11 percent, to up to
$1.33 billion to pay for development of the BS-4 block in the
Santos basin, Chief Financial Officer Roberto Monteiro said.
OGX agreed last month to purchase a 40 percent stake in the
offshore block BS-4, operated by Queiroz Galvão Exploração e
Produção SA, from Brazil state-led oil company
"We're in the process of adjusting costs," Monteiro said at
an event with investors in Rio de Janeiro, OGX's base.
"In the future it would make sense for us to consider
selling a stake in our more mature blocks such as Tubarao
Martelo," he said, adding that there are not yet any formal
talks with companies about possible sales.
The Tubarao Martelo field in the Campos Basin off the coast
of Rio de Janeiro contains some of the oldest discoveries by
OGX, which is controlled by Brazilian billionaire Eike Batista.
To gain more financial resources, OGX also has a put option
to sell $1 billion in shares to Batista. Monteiro referred to
the option as an "overdraft line" and reiterated that the
company did not yet know if it will need to use it.
Monteiro also said heavy seas were delaying connection of a
third well in OGX's only operating field, Tubarao Azul, to the
OGX-1 floating production, storage and offloading platform.
The company had said on Dec. 4 that it planned to connect
the well in coming weeks.
Initial production from Tubarao Azul's third well should
average 6,000 barrels per day but would later fall to 5,000 bpd,
That would be in addition to the average 10,100 bpd that OGX
said the field had produced from two wells in November.
OGX expects output at the Tubarao Azul field, which started
in January, to fall nearly 8 percent per year with water
injection and 10 percent annually without it.
Oil production has been costing OGX $50 per barrel, but
could over time fall to $30 per barrel, Monteiro said. He said
OGX had been receiving $95 per barrel for its oil.