OGX spent US$588 million in the third quarter. Compared to the previous quarter, the Company had a slight increase given expenditures in its onshore operations (GTU final assembly and two additional rigs) and in the development of Tubarão Martelo and Tubarão Azul fields. The Company has begun to optimize and rationalize its expenses, mainly in exploration, while it moves towards the development phase. At the end of September, the Company returned one of its offshore rigs, which should impact the exploration capex in the first quarter of 2013.
OGX maintains a solid cash position of approximately US$2.5 billion. Considering the fourth quarter operations, OGX expects to end 2012 with a cash position of approximately US$1.8–1.9 billion.
Tubarão Azul Field Development
- Extended Well Test concluded in the Tubarão Azul Field (OGX-26HP)
- Total production of 856,800 boe in the quarter
- Delivery of one shipment of approximately 800,000 barrels to Shell in July
- Delivery of one shipment of approximately 800,000 barrels to Reliance Industries in October
- Receipt of environmental authorization from IBAMA to start drilling in the BM-C-37 and BM-C-38 blocks of the Campos Basin
- Commencement of drilling in Cozumel prospect, BM-C-37 block
Since commencing production on January 31, the Tubarão Azul Field has produced more than 2.5 million barrels of oil and delivered four shipments. Average daily production in the nine months of production from January 31 to October 31 was 9.7 kboepd, and, this quarter alone, average daily production was 9.3 kboepd. FPSO OSX-1 continues to perform very well, with an average operating efficiency of 98.5% since first oil.
The OGX-26HP well was reconnected to FPSO OSX-1 during the first week of August, after having been closed for slightly over a month to allow for the replacement of the centrifugal submersible pump. Since then, the two production wells, OGX-26HP and OGX-68HP, have again been producing in line with expectations with stable flows rates of above 5.0 kboepd on average per well.