Batista's OGP given debt deadline for Brazil offshore block

<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjv9IAYdgk92NY-Y38H8ecvaC3O1h6fB6VvwIzesr1N8v4dXQv0n21DBLDgR0rR5EqRTgvKc8jNMidsyqpVDgNFYr9jX7cAB0A0dD3ONxfE2qN6UFSNPs9kD685pQuo7aa1W1SjrfwPpX0J/s1600/brazil-oil-shale-map-400.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjv9IAYdgk92NY-Y38H8ecvaC3O1h6fB6VvwIzesr1N8v4dXQv0n21DBLDgR0rR5EqRTgvKc8jNMidsyqpVDgNFYr9jX7cAB0A0dD3ONxfE2qN6UFSNPs9kD685pQuo7aa1W1SjrfwPpX0J/s320/brazil-oil-shale-map-400.png" width="304" /></a></div><div class="p1">Brazilian oil firm OGP, formerly <a href="http://www.bnamericas.com/company-profile/en/OGX_Petroleo_e_Gas_Participacoes_S,A,-OGX">OGX</a>, will be stripped of its stake in the offshore BS-4 block unless it meets a mid-January deadline to repay debt, according to sector regulator <a href="http://www.bnamericas.com/company-profile/en/Agencia_Nacional_do_Petroleo,_Gas_Natural_e_Biocombustiveis-ANP_,Brasil,">ANP</a>.</div><div class="p1"><br /></div><div class="p1">In a statement released on Monday, BS-4 operator QGEP Participações said OGX owed concession partners 73mn reais (US$31mn) having missed "three cash calls" since October 30.</div><div class="p1"><br /></div><div class="p1">In a notice dated December 23, ANP said OGP had 15 working days to meet its financial obligations.</div><div class="p1">Failure to do so will result in the "compulsory transfer or termination of the agreement in relation to its participating interest in the block," the regulator said.</div><div class="p1"><br /></div><div class="p1">OGP could not be reached for comment on Monday.</div><div class="p1"><br /></div><div class="p1">QGEP holds a 30% interest in BS-4 with the balance held by OGP (40%) and Barra Energia (30%).</div><div class="p1">Controlled by failed entrepreneur Eike Batista, OGP is expected to submit a restructuring plan to a bankruptcy court in Rio de Janeiro next month.</div><div class="p1"><br /></div><div class="p3">Batista's personal fortune is said to have fallen below US$1bn, having peaked at US$34bn early last year. Analysts blame the magnate's fall on unrealistic production targets based on false estimations.</div><div class="p1">Block BS-4 includes the post-salt Atlanta and Oliva fields, about 185km off Brazil's southeast coast in the Santos basin. </div><div class="p1"><br /></div><div class="p1">The consortium plans to start drilling a second early production system (EPS) well at Atlanta in January.</div>

Batista's OGP given debt deadline for Brazil offshore block

Brazilian oil firm OGP, formerly OGX , will be stripped of its stake in the offshore BS-4 block unless it meets a mid-January deadline to ...

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