Perenco Says ‘Hopes’ to Find Brazil Oil in ‘Days’ With OGX

Perenco SA, the French oil producer that scrapped an initial public offering of its Brazilian unit in 2011, “hopes’” to have a successful offshore well discovery in the South American country soon.

“Hopefully, we will have success in the next few days,” Cesar Ramos, head of Perenco’s Brazil unit, said in an interview in Rio de Janeiro today. Perenco and partners OGX Petroleo & Gas Participacoes SA (OGXP3) and Sinochem Group are drilling the Caju well at the ES-M-529 block in Brazil’s offshore Espirito Santo basin.

A discovery would mark the first in Brazil for closely held Perenco, which shelved local IPO plans on market conditions two years ago. A find would also end a series of missteps for partner OGX, the oil company controlled by billionaire Eike Batista, which lost 60 percent in market value this year on missed production targets and output cuts.

OGX agreed May 7 to sell a 40 percent stake in its Tubarao Martelo field, which isn’t yet producing crude, to Malaysia’s Petroliam Nasional Bhd., known as Petronas, for $850 million as it seeks to raise cash. OGX reported a larger-than-expected first quarter loss of 805.6 million reais on May 9.

To contact the reporters on this story: Rodrigo Orihuela in Rio de Janeiro at rorihuela@bloomberg.net; Peter Millard in Rio de Janeiro at pmillard1@bloomberg.net

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

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