Eric Watkins
Senior Correspondent
LOS ANGELES, Aug. 6 -- Brazil's privately held OGX Petroleo e Gas Participacoes has signed an agreement with Diamond Offshore Netherlands BV, a subsidiary of Diamond Offshore Drilling, for the charter of a third drilling rig.
The Ocean Quest semisubmersible rig, under a 2-year contract, will be used in the Santos basin from the second half of 2009. OGX said the rig can drill as deep as 7,600 m in water as deep as 1,100 m.
OGX last week announced it had contracted two other offshore drilling rigs from Diamond Offshore for 3 years. It said the two rigs also would be used for drilling in the Campos basin as of the second half of 2009.
According to reports, OGX broke an earlier contract signed with Queiroz Galvao Oleo e Gas, a unit of the local industrial conglomerate Queiroz Galvao, for the charter of the Alaskan Star semisubmersible drilling rig.
In early July, OGX announced the signing of a 3-year charter of the Alaskan Star, which Queiroz Galvao Purfuracoes SA purchased in 1995 from Western Co., Houston, for $11.7 million.
Shortly after OGX announced the signing of the Alaska Star, Brazilian federal police raided the home and offices of company founder Eike Batista in a probe of alleged fraud and tax evasion. OGX said the investigation has no relation with the company's operations and does not represent any adverse effect on its business plan.
Founded by Batista in September 2007, OGX was listed on Sao Paulo Stock Exchange Bovespa in June 2008. According to reports, its initial public offering, one of the biggest ever on the Sao Paulo market, was oversubscribed five times.
OGX is said to hold concession rights in some 21 blocks in the Campos, Santos, Espirito Santo, and Para-Maranhao basins. Company plans call for some $1.3 billion investment in the blocks.
Contact Eric Watkins at [email protected].
