OGX Petroleo e Gas Participacoes, the Brazilian oil company controlled by billionaire Eike Batista, said it is moving forward with its exploration and production plans that include first production by October with the goal of producing as much as 730,000 barrels per day by the end of 2015.
The company, which sold $2.56 billion in debt last month, said it can complete its exploration plans with cash on hand. That nest egg will last the company until its oil output starts generating enough cash to cover the company's costs in late 2013 or early 2014, the Wall Street Journal reported, citing OGX CFO Marcelo Torres.
OGX is expected to spend $4 billion to $5 billion in 2013 in an effort to bolster production. The company's exploration efforts will focus on shallow-water fields in Brazil's Campos Basin where 85% of the country's oil is produced. Brazil is South America's second-largest oil producer behind OPEC member Venezuela.
Last year, OGX mulled selling a 30% stake in its Campos Basin assets, but that sale was delayed and Batista has since said he would only consider selling a 10% interest. The company's production at Brazil's Waimea field should reach about 20,000 barrels a day by the end of the year, rising to 50,000 barrels a day in 2012, the Journal reported.