Bankrupt Oil & Gas Firm Abandons 7 Exploration Leases

Brazil's bankrupt Oleo e Gas Participações SA agreed on Friday to abandon seven offshore oil prospects after the country's oil regulator denied a petition to extend its exploration and production rights to six of the areas.

Oleo e Gas, which made Latin America's biggest-ever bankruptcy protection filing on Oct. 30, said in a statement that it will give up its rights to its Itacoatiara, Viedma, Tulum and Vesúvio discoveries in the Campos basin east of Rio de Janeiro. It bought those rights at auction in 2007 from the Brazilian government.

The company also said it will give up its Natal and Belem prospects in the Santos Basin south of Rio de Janeiro. It had asked to extend its rights in the six areas but was denied an extension by the ANP, the statement said.

Oleo e Gas, controlled by Brazilian tycoon Eike Batista was formerly known as OGX Petroleo e Gas Particpações SA.

The company also said it would give up its rights to the Curitiba prospect in the Santos Basin after tests on the reservoir showed lower-than-expected potential.