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OGX sells 50% stake in new Brazilian oil, gas blocks to MPX

BY JEFF FICK

RIO DE JANEIRO -- OGX Petroleo e Gas Participacoes SA (OGXP3.BR, OGXPY) sold a 50% stake in four oil and natural gas exploration blocks acquired at an auction earlier this week to sister company MPX Energia.

MPX will pay OGX roughly $5 million, or half of the signing bonuses OGX offered as part of the firm' s winning bid at Wednesday' s concession auction, the companies said. In addition, MPX will also assume half of the exploration commitments for the blocks.

The four blocks are located in the Parnaiba Basin of Brazil' s northeast state of Parnaiba. OGX and MPX previously formed a joint venture firm, OGX Maranhao, which developed a natural-gas-fired power plant alongside a series of fields that started production earlier this year. The power plants will boost Brazil' s electric generation capacity, and help offset low reservoirs in Brazil' s hydroelectric system, which has caused concerns about possible energy rationing.

OGX and MPX are both part of billionaire Brazilian businessman Eike Batista' s industrial empire, which spans such diverse interests as oil, mining, shipbuilding and real estate.

Dow Jones Newswires

05/16/2013

 

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