OGX Names New CEO After Share Plunge Reduces Batista’s Wealth

OGX Petroleo & Gas Participacoes SA named a new chief executive officer after a plunge in shares wiped out $3.8 billion of founder Eike Batista’s wealth.

Luiz Carneiro will replace Paulo Mendonca, who will assume a post as special adviser to Batista, the company said yesterday in a regulatory filing. Carneiro, who had served as the CEO and president of OSX Brasil SA (OSXB3), Batista’s shipbuilding company, will be replaced by Carlos Bellot, according to a separate filing.

Carneiro is a mechanical engineer with an MBA from Columbia University and also held management positions in Brazil’s state oil company Petrobras, as Rio de Janeiro-based Petroleo Brasileiro SA is known, before working for Batista’s companies. Bellot previously served as OSX’s operations director and worked for more than 30 years at Petrobras, according to OSX’s website.

OGX shares lost 40 percent of their value over the past two days after the oil company cut production targets at its first two wells by as much as 75 percent. The decline dragged down Batista’s mining, logistics and shipbuilding companies on concern the enterprises, some of which rely on OGX for revenue, will scale back targets as well.

The share plunge pushed Batista out of the world’s 20 richest people, according to the Bloomberg Billionaires Index.

Batista, 55, emerged as Brazil’s richest man by building an empire of interlinked oil, mining, shipbuilding and logistics companies to harness the nation’s natural resources.

To contact the reporters on this story: Helder Marinho in Sao Paulo at hmarinho@bloomberg.net; Jonathan Roeder in Mexico City at jroeder@bloomberg.net

To contact the editor responsible for this story: James Attwood at jattwood3@bloomberg.net

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