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OGX Offshore Output Falls in March on Technical Trouble

By MarEx 2013-04-17 08:54:00

* Tubarao Azul field at 8,300 boepd vs 11,300 boepd in Feb

* OGX shares suffering from repeated production misses

(Reuters) - Brazilian oil company OGX Petroleo e Gas Participacoes SA said on Tuesday that output at its offshore oil wells fell in March, as equipment problems added to investor concerns about missed production targets.

Offshore production at the Tubarao Azul field in the Campos Basin averaged about 8,300 barrels of oil equivalent per day (boepd) in March, according to a securities filing, down from 11,300 boepd in February and 13,200 bpd in January.

The continued slide could put more pressure on the company controlled by billionaire Eike Batista after its stock lost 90 percent over the past 12 months due to weak output and mounting financial stress on Batista's EBX industrial group.

Unstable electric power and other technical problems led OGX to shut down some offshore pumps for up to two weeks in March.

Struggles in March added to a challenging quarter in which output missed the 11,700 boepd forecast by Caio Carvalhal, a senior oil and gas analyst at J.P.Morgan Securities.

Slipping offshore output contrasted with an increase in onshore natural gas production to 6,800 boepd in March from 5,500 boepd in February and 3,200 boepd in January.

--Reporting by Brad Haynes and Guillermo Parra-Bernal; Additional reporting by Jeb Blount in Rio de Janeiro; Editing by Gary Hill and Andre Grenon