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ANP may cancel exploration rights on blocks from Oleo e Gas SA

28th January 2014

Brazil's, Agência Nacional do Petróleo (ANP) has announced that it would decide over the next 60 days whether to repeal the exploration rights for blocks controlled by Oleo e Gas Participacoes SA, the struggling oil company owned by Brazilian industrialist, Eike Batista.

Map of Espirito Santo

Brazil's Agência Nacional do Petróleo(ANP) oil regulator said on Monday that it would decide over the next 60 days whether to revoke the exploration rights for blocks controlled by Oleo e Gas Participacoes SA, the struggling oil company owned by Brazilian industrialist, Eike Batista.

The regulator said it had received documents from Batista's company and will be evaluating the financial capability of Oleo e Gas to achieve its timeline for investing and developing exploration blocks.

Batista's company could lose the rights to blocks in the state of Espírito Santo if it does not meet capital or spending commitments.

The company is behind in spending on drilling in offshore blocks ES-M-472, ES-M-529 and ES-M-531, which it is developing with its partners, Perenco SA and Sinochem International Corp, a source, who wished to remain anonymous, told Rigzone.

Oleo e Gas, formerly known as OGX Petroleo e Gas Participacoes SA, filed for a $4.75 billion bankruptcy restructuring process on October 30th, but it is still required to show that it has the ability to meet the exploration timetable that was agreed with ANP.

OGX is a company part of the EBX Group that runs the exploration and production of oil and natural gas. The company was established in 2007 and has a portfolio of potential resources estimated at 10.8 billion barrels of oil equivalent (boe).

OGX is the biggest Brazilian private sector company in the oil industry with 33 exploratory blocks in Brazil (28 blocks) and Colombia (5 blocks). Over 90 per cent of its portfolio is located in shallow water or on land, which are the ideal conditions for the development of projects that can be operated rapidly and cost less, both for exploration and for production.

 

 

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