OSX's second FPSO arrives in Brazil

8/26/2013

OSX's second FPSO arrives in Brazil

BY JEFF FICK

RIO DE JANEIRO -- OSX Brasil S.A., part of Brazilian businessman Eike Batista's troubled industrial empire, said Monday that the company's second floating oil-production platform arrived on time in Brazil.

The OSX-3 floating production, storage and offloading vessel, FPSO, arrived Saturday in Brazil, OSX said in a statement. The FPSO will be leased to oil company OGX and installed at OGX's Tubarao Martelo field.

The start of production at Tubarao Martelo should help ease some of the restructuring pressures at Mr. Batista's EBX Group of companies. Mr. Batista's firms have experienced a crisis of confidence after OGX failed to meet production targets. OGX's troubles soon spread to the rest of Mr. Batista's EBX Group of companies, with the entrepreneur now in the midst of complicated restructuring efforts that have included some asset sales.

Once production at Tubarao Martelo starts, OSX should be able to quickly refinance the $500 million in loans used to build the platform, Chief Financial Officer Luiz Guilherme Marques said earlier this month. The platform will generate revenue of $383,000 a day when it starts output.

Dow Jones Newswires

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