Brazil's OGX suspends development of certain oil fields, cancels OSX contracts

7/1/2013

Brazil's OGX suspends development of certain oil fields, cancels OSX contracts

BY ROGERIO JELMAYER

SAO PAULO -- OGX controlled by billionaire Eike Batista, said it won't meet production targets because it doesn't have the right technology to continue exploration efforts at three fields, and that as a result, it has cancelled contracts with sister company OSX for construction of oil platforms.

OGX suspended development of the Tubarao Tigre, Tubarao Gato, and Tubarao Areia oil fields.

The company also said it cancelled the construction of five offshore production units by the naval construction company OSX because of the suspensions. OGX said it will pay $449 million to OSX because of the cancellations.

Dow Jones Newswires

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