OGX starts pumping oil at promising Tubarao Martelo field in Brazil
BY RODRIGO ORIHUELA
RIO DE JANEIRO (Bloomberg) -- OGX Petroleo & Gas Participacoes, the world’s worst performing oil producer this year, started production at its most promising Brazilian field after failures at four other offshore areas eroded cash reserves.
“Production has started at the Tubarao Martelo field,” OGX said in a regulatory filing. The company started pumping crude from a single well in the Campos basin field after receiving an environmental license November 29, according to the filing. No further details were given.
Tubarao Martelo, which may hold as much as 108.5 MMbbls, including proven, probable and possible reserves, is OGX’s latest attempt to produce crude after abandoning projects it had previously declared commercial. OGX, which is controlled be founder Eike Batista, became the first Brazilian oil producer to seek creditor protection when it filed for a so-called judicial recovery in a Rio court in October.
OGX expects to run out of cash in the last week of December and needs about $250 million to sustain operations through April, it said in an October 23 presentation to Rothschild, the adviser hired by its bondholders. Last month, Petroliam Nasional Bhd. canceled a contract to buy a 40 % stake in two offshore exploration blocks that include Martelo, after estimates were slashed.
The oil is being produced with a platform called OSX-3, which belongs to Batista’s shipbuilder, OSX Brasil.