OGX Gives Up Rights to Acquire Blocks Won in 11th Licensing Round (Brazil)

OGX Gives Up Rights to Acquire Blocks Won in 11th Licensing Round (Brazil)

Eike Batista’s OGX has announced that its new business plan, which was derived from the decision to suspend the development of the Tubarão Tigre, Tubarão Gato and Tubarão Areia fields in Brazil, the Company’s Management has decided to reassess the exposure strategy on additional exploratory risks.

Consequently, the Management decided that at this time it will not be recommending any new exposure to exploratory risk in areas where OGX has not established partnerships with other companies, which would mitigate the exploration risk.

As a result, during a meeting held on August 26 2013, the Company’s Management decided to relinquish the right to acquire blocks BAR-M-213, BAR-M-251, BAR-M-389, CE-M-663, FZA-M-184, PN-T-113, PN-T-114, PN-T-153 and PN-T-168, which it won without partnerships during the ANP’s 11th Exploration License Round. The penalty cost will be of an estimated amount of R$3,420,000.00;

Also, the company announced it would proceed with the bonus payment and the signature of the concession contracts for blocks CE-M-603, CE-M-661, POT-M-762 and POT-M-475, which it won in partnerships with ExxonMobil, TOTAL E&P and Queiroz Galvão Exploração e Produção (QGEP).

Earlier this month, the company reported a massive quarterly net loss of R$4.7 billion (around USD 2 billion).

The results were impacted by expenses of R$3.6 billion (around USD 1.54 billion) related to the impairment of the investments carried out in Tubarão Azul, Tubarão Tigre, Tubarão Gato and Tubarão Areia fields as it was concluded that their development would not be economically viable. The company then, consequently, called off the construction of FPSO OSX-4 and FPSO OSX-5, as well as WHP-1, WHP-3 and WHP-4 by OSX,  resulting in a cash  disbursement of approximately US$449 million in compensation to OSX.

Offshore Energy Today Staff, August 27, 2013

 

 

Share this article

Follow Offshore Energy Today

Events>

<< May 2016 >>
MTWTFSS
25 26 27 28 29 30 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

Caspian Oil & Gas Exhibition

Traditionally opened by the President of Azerbaijan, HE Ilham Aliyev, Caspian Oil & Gas is the best-attended oil and gas trade event…

read more >

3rd Annual Myanmar Upstream Oil & Gas Summit & Exhibition

The Summit provided updates on oil & gas production sharing contracts yet to be finalised, exclusive geological data, updates on the fiscal…

read more >

Iraq Petroleum 2016

Iraq Petroleum is established as the only strategic event bringing together the Iraqi industry leaders with key international players…

read more >

Operational Excellence in Oil and Gas Asia 2016

The Operational Excellence (OpEx) in Oil and Gas Asia-Pacific 2016 conference will focus on benchmarking, best practice and innovation…

read more >

Jobs>

Electrician

For one of our clients we are looking for a Ships Electrician. Our client is a company with worldwide activities. You will work in a rotation of 4 till 6 weeks on and off.

apply

Assistant Driller

Maersk Drilling Norge AS was established in 1990 and employs a staff of approximately 1000 people.

apply

QC Coordinator Offshore

Do you attach great importance to quality and do you have an affinity with offshore projects? Then read about what Van Oord can offer you.

apply