Batista’s Oleo e Gas must meet obligations

Reuters says that Brazilian tycoon Eike Batista’s Oleo e Gas Participacoes SA risks losing its 40% stake in the Atlanta and Oliva fields in Brazil’s Santos basin for failure to pay its share of development costs, according to the company’s partner, QGEP Participações SA.

Brazil's oil regulator ANP has ordered Oleo e Gas, formerly known as OGX Petroleo e Gas Participacoes SA, to show that its financial obligations in the fields, part of the BS-4 offshore concession, are up to date.

Oleo e Gas, which filed Latin America’s largest-ever bankruptcy protection petition on Oct. 30, 2013, owes 73 million reais ($31.2 million) to its partners QGEP and Barra Energia do Brasil Petróleo e Gas.

QGEP and Barra each own 30% of the fields south of Rio de Janeiro. QGEP says that the first horizontal production well in Atlanta is due to begin output in January.

Failure to meet financial commitments related to oil exploration and production concessions can result in the loss of those concessions under Brazilian law. ANP General Director Magda Chambriard has said that Oleo e Gas' bankruptcy would not automatically result in a loss of oil production rights as long as the company met its obligations under the concessions.

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