Brazil's Óleo e Gás pays off part of oilfield debt

According to Reuters, Óleo e Gás Participações SA, Brazilian entrepreneur Eike Batista's oil company, reported Jan. 9 that it has paid off part of the debt related to the development costs for two offshore oil fields.

The company, formerly known as OGX, paid the first installment of a past-due debt worth 73 million reais (US$30.5 million) related to the Atlanta and Oliva fields in Brazil's Santos basin.

Óleo e Gás filed for Latin America's largest-ever bankruptcy protection petition on Oct. 30.

The remaining past-due debt installments will be paid off "in the same way," said a company spokeswoman in an email to Reuters. The debt payment was first reported by newspaper Valor Economico.

Óleo e Gás could lose its 40% stake in the fields if it fails to pay its share of development costs.

Valor reported that the company also provided Brazil's oil regulator ANP with documents showing that it is in a financial position to honor all contracts it won for the exploration of oil fields.

Óleo e Gás said in a securities filing that it will pay the debt in the two oil fields, using financial resources obtained in an agreement with creditors made in December 2013.

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