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 2015 >>
MTWTFSS
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

Myanmar Oil and Gas Week

Recent facts about the Myanmar oil and gas market:

– Some experts have stated that the potential of Myanmar’s fields could be on a par…

read more >

OTC 2015

OTC is the best event to gain technical knowledge and make valuable contacts. OTC is brought to you by technical societies that cover all…

read more >

Abu Dhabi International Downstream 2015

Building upon the success of 2014, Abu Dhabi International Downstream 2015 will continue to focus on the regions current core goal of…

read more >

2015 Northern Europe Assembly

This year’s content-driven, networking focused business forum will bring together over 20 expert speakers to help the industry answer…

read more >

Jobs>

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

Assistant Driller

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

apply

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