• 2 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 2 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 2 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 2 days Schlumberger Warns Of Moderating Investment In North America
  • 2 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 2 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 2 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 2 days New Video Game Targets Oil Infrastructure
  • 3 days Shell Restarts Bonny Light Exports
  • 3 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 3 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 3 days British Utility Companies Brace For Major Reforms
  • 3 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 3 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 3 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 3 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 3 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 3 days Rosneft Signs $400M Deal With Kurdistan
  • 4 days Kinder Morgan Warns About Trans Mountain Delays
  • 4 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 4 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 4 days Russia, Saudis Team Up To Boost Fracking Tech
  • 4 days Conflicting News Spurs Doubt On Aramco IPO
  • 5 days Exxon Starts Production At New Refinery In Texas
  • 5 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 5 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 5 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 5 days China To Take 5% Of Rosneft’s Output In New Deal
  • 5 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 5 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 5 days VW Fails To Secure Critical Commodity For EVs
  • 5 days Enbridge Pipeline Expansion Finally Approved
  • 6 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 6 days OPEC Oil Deal Compliance Falls To 86%
  • 6 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 6 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 6 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 6 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 7 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 7 days Aramco Says No Plans To Shelve IPO
James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

Eike Batista’s Year from Hell Continues as OGX Files for Bankruptcy Protection

Eike Batista’s Year from Hell Continues as OGX Files for Bankruptcy Protection

Just hours before becoming the first Brazilian oil producer to ever file for bankruptcy protection, OGX Petroleo e Gas Participacoes SA was able to sell its only producing assets; a move that helped to reduce the amount of money that the company’s creditors would be able to recover in the event of liquidation.

OGX was the second largest oil company in Brazil, by market value, after Petrobras, and is part of the EBX Group, controlled by Eike Batista, the former billionaire who has in recent years lost nearly his entire fortune.

Bloomberg reported that Cambuhy Investmentos Ltda, a private equity fund from Brazil, along with EON Se, of Germany, agreed to buy OGX’s stake in the OGX Maranhao Petroleo e Gas SA natural gas company. In a two stage deal the two companies will hand over 594 million reais ($270 million) for OGX’S entire holding in the gas producing assets that operate eight blocks in the Parnaiba basin, supplying gas to local thermoelectric plants run by Eneva SA, a Brazilian utility.

Related article: Brazil’s Pre-Salt Auction Goes to Shell-Total Consortium

Eneva is another of Batista’s companies, one that he controls jointly with EON, and a major shareholder in OGX Maranhao. On the 28th of October it offered to buy the remaining stock of the gas company in the case that OGX defaulted on its loan payments and entered bankruptcy, offering to pay 200 million reais for the 66.7 percent stake, but on Thursday it agreed to forfeit its rights to the stock to Cambuhy and EON, who will buy at a far higher price.

Cambuhy’s involvement in the natural gas company will stabilise it, offering more security, and ensuring a safe supply of natural gas to support Eneva’s power plants in the Parnaiba region.

OGX Petroleo’s bankruptcy protection is the latest episode in a long list that has seen Batista’s personal fortune lose about $30 billion over the past 16 months. After being founded in 2007, OGX made some good oil discoveries in shallow waters off the coast of Rio de Janeiro, growing quickly and becoming the foundation of Batista’s empire. When moving from exploration to production OGX found that the geology of terrain around the reserves was much more complicated than expected and several projects had to be abandoned. The beginning of the end.

Shares in OGX Petroleo e Gas Participacoes SA fell by as much as 35.3 percent on Thursday, the day after filing for bankruptcy protection.

By. James Burgess of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News