Óleo e Gás Participações SA, the Brazilian oil
producer currently under bankruptcy protection, received the
first portion of a debt-in-possession financing package,
according to a statement on Thursday. The company received $125
million in the so-called DIP loan, of a total $215 million that
were pledged by creditors, the company added.
The company was formerly known as OGX Petróleo e Gás
The financing accord between Óleo e Gás and its creditors is
a necessary step to carry out a debt-for-equity swap that will
relieve Eike Batista, the founder of the company and a former
billionaire, of control. Proceeds from the DIP financing will be
used to repay a $50 million bridge loan extended to the company
late last year, and for general corporate purposes. Currently,
Óleo e Gás is struggling to pay for the costs of developing its
most promising fields while it restructures operations to emerge
from bankruptcy protection.
In a separate announcement, Óleo e Gás said average output
at its Tubarão Martelo field's 8-HP well was 3,969 barrels of
oil equivalent a day. Production at the 44-HP well and the
Tubarão Azul field was 6,827 boed and 3,719 boed, respectively.