OGX to abandon Tubarao Azul field

Brazil’s OGpar, formerly known as OGX, an oil company formed by a former billionaire Eike Batista, will not be resuming production from its Tubarao Azul oil field in the Campos Basin, offshore Brazil.

The company, under bankruptcy protection since 2013, said this week that after one year of suspension of production on Tubarão Azul Field, OGX has requested the license relinquishment to Agência Nacional de Petróleo, Gás Natural e Biocombustíveis (“ANP”), the Brazilian regulatory agency.

The oil firm explained it did not find a feasible alternative to resume activities on Tubarão Azul Field and, as the field operator, OGX will begin the deactivation and abandonment processes in the aforementioned field.

Furthermore, it added it was negotiating and preparing to hire suppliers that will take part in the process.

“It is worth emphasizing that a share of the resources destined to the deactivation and abandonment processes was transferred to an escrow account pledged in favor of ANP, in compliance with the agreement with the agency,” OGpar said.

Worth noting, the FPSO OSX-1, previously used for the production of oil at the field, has already been decommissioned.

The FPSO OSX-1, built in Korea and customized in Singapore, was, according to InterMoor’s statement in August, the first FPSO to be decommissioned in Brazil waters. The decommissioning operation took place in a water depth of 127m (417 ft).

Offshore Energy Today staff