Oleo e Gas Reviewing Viability of Oil Production

Oleo e Gas Participações SA, the recently restructured Brazilian oil company, said on Friday it was reviewing the viability of continued output at its only producing field after the fall in oil prices cut it off from finance for expansion.

 

Without new finance, the field will have to remain at current production levels of about 8,000 barrels of oil and natural gas equivalent a day in 2015, the company said in a securities filing. The goal was to raise output to 12,700 barrels a day.

 

Brazil's oil regulator ANP has given Oleo e Gas until March 8 to present a development plan for Tubarão Martelo, the statement said adding that the company has hired a consultant to reconsider the viability of output at the field.

 

Oleo e Gas, formerly known as OGX Petroleo e Gas Participações SA, was once controlled by Brazilian tycoon Eike Batista and his EBX Group.