January 9, 2014 / 11:26 AM / 4 years ago

Brazil's Óleo e Gás paid off part of oil field debt -report

RIO DE JANEIRO, Jan 9 (Reuters) - Óleo e Gás Participações SA, Brazilian entrepreneur Eike Batista’s oil company, told newspaper Valor Economico that it had paid off part of a debt related to development costs in two of its offshore oil fields.

The company, formerly known as OGX, paid the first installment of a past-due debt worth 73 million reais ($30.5 million) in the fields of Atlanta and Oliva in Brazil’s Santos basin, Valor reported on Thursday, citing an unnamed company source.

Óleo e Gás filed for Latin America’s largest-ever bankruptcy protection petition on October 30.

The remaining past-due debt installments will be paid off “in the same way,” the source told Valor. Óleo e Gás representatives were not immediately available to confirm the report.

Óleo e Gás could lose its 40 percent stake in those fields if it fails to pay its share of development costs.

Valor said the company also provided Brazil’s oil regulator ANP with documents showing it is in a financial position to honor all contracts it won for the exploration of oil fields.

Óleo e Gás had promised in a securities filing earlier this year to honor its debts in the two oil fields, using the financial resources it obtained from an agreement with creditors in December.

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