OGX, the troubled Brazil oil company controlled by former billionaire Eike Batista, said it expects to end up in arbitration over a deal they made with Petronas.

The day after filing for bankruptcy in the middle of 2013, OGX said in a securities filing that it had struck a deal with Petronas for which it should have received about $869 million.

“That effectively has still not happened and will probably generate an arbitration process to resolve the issue,” OGX said in a statement signed by Chief Executive Paulo Simões.

OGX announced the deal with the Malaysian oil giant, originally valued at $850 million, in May.

Petronas sought to take a stake in two offshore Brazilian oil blocks that would have been a lifeline to Eike Batista as he sold off parts of his industrial empire to appease debtors.

OGX sought court protection from creditors on Wednesday in the  largest-ever corporate bankruptcy filing for Latin America.


Leave a Reply