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OGX, owned by Eike, is the first privatecompany to produce at seaWith nearly five months of delay in comparison to the original plan, OGX, owned by the

businessman Eike Batista, will start producing oil in the Campos Basin (off the coast ofRio) on January 28 --at the beginning of the year, the date foreseen was the 23rd.

It will be the debut, as an operator, of a private Brazilian company in "offshore" (at sea)

production in Brazil. The last obstacle to the commencement of operations was

overcome on January 2, with the granting of the Operating License to the company byIBAMA.

Before this, weather conditions and equipment problems caused the delay, according tothe company.

The celebration marking the event depends on the schedule of President Dilma

Rousseff, but according to the general director of OGX Paulo Mendona, with or withoutthe celebration, this time there will be no postponement.

"Everything is ready, except for the connection of the lines to the platform."

According to Mendona, despite the delay, the start of production is occurring in recordtime, after the discovery of the field in 2009.

The OGX schedule is being closely watched by its partners in the capital market, which

hold 39% of the company. The share price fell last year after the start of production waspostponed successively.

"Let's see if it will really happen on the 23rd. the delay really hurt the stock last year.

Another postponement would be very bad for the company," said Erick Scott, an expert

on petroleum at SLW Corretora. On the other hand, he said, if in fact production begins,there would be a positive effect on the stock.

SIXTH LARGEST PRODUCER

In February, OGX delivered the first of two loads of 600 thousand barrels of oil fromWaimea to Shell. The remaining production has no set destination as yet.

"We are following the price of oil to close a new deal," said Mendona.

The interconnection of the three lines that bring oil from well OGX-26 in the Waimea

Field to platform OSX-1 will be made next Saturday. The production of the well will be15 to 20 thousand barrels a day, which will make OGX the sixth largest producer in thecountry.

The forecast is that by the end of this year, two more wells will be functioning in the

same location, raising production to between 45 and 50 thousand barrels a day andpushing OGX past the fifth largest, BP Energy.

In 2013, two more platforms are expected. According to projections by OGX, this willincrease production to 150 thousand barrels a day.

The units will be installed in the Waikiki Field, considered the company's best, and in acomplex of small fields (Fuji, Illimani, Per-Ing), all in the Campos Basin.