Batista’s OSX-3 FPSO Arrives in Brazil

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August 24, 2013

FPSO OSX-3 pictured at her May 31, 2013 naming ceremony. Photo credit: OSX

reuters_logo1RIO DE JANEIRO (Reuters) – OSX Brazil SA, the shipbuilding and ship-leasing unit of tycoon Eike Batista’s Grupo EBX, said on Friday that its OSX-3 vessel arrived in Brazilian waters and would be delivered to sister oil producer OGX Petroleo e Gas Participações SA.

The ship, known as a floating production, storage and offloading ship, or FPSO, will arrive in Rio de Janeiro on Saturday en route from Singapore where it was built, OSX said in a securities filing. The ship has been leased by OGX to produce oil from its Tubarão Martelo offshore field northeast of Rio de Janeiro.

The arrival of OSX-3 is being carefully watched because the ship represents one of the few chances OGX, once the largest company in the troubled EBX energy, mining and logistics empire, has to develop commercial production.

The announcement also came the day OSX named Marcelo Luiz Maia Gomes as chief executive, replacing Carlos Eduardo Sardenberg Bellot, who is leaving the company.

Failure to meet output targets at OGX’s Tubarão Azul field since early 2012 helped cause the meltdown of EBX, causing the value of the group once worth more than $60 billion to nearly evaporate. Tubarão Azul oil is being produced by the OSX-1 FPSO.

In May, Malaysia’s Petroliam Nasional Bhd, or Petronas agreed to pay $850 million for 40 percent of two offshore oil blocks controlled by OGX. One of the blocks is home to Tubarão Martelo.

OSX also said it had canceled its contract with Spanish construction company Acciona Infraestructuras SA, which was building its shipyard at the Port of Açu, north of Rio de Janeiro. Açu is owned by EBX’s port company, LLX Logística SA.

With the cancellation, OSX makes its decision to limit its shipyard at Açu to its planned first phase and mothballing construction of warehouses and docks slated for its phase 2 expansion. (Reporting by Jeb Blount; Editing by Peter Cooney)

© 2013 Thomson Reuters.

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