OGX Cancels OSX Contracts as It Weighs Shutting Oil Field
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Billionaire Eike Batista’s OGX Petroleo & Gas Participacoes SA tumbled to record lows as a warning that the company may shut its only producing wells intensified speculation it will have to restructure debt.
OGX shares posted a record 30 percent drop, erasing about $300 million of market value, while its bonds due 2018 fell to 19 cents on the dollar. The Rio de Janeiro-based producer said in a regulatory filing today that it’s considering halting output at the Tubarao Azul field after a technical review and canceled orders for new oil platforms.