OGX, OSX Brasil sign cooperation agreement

OGX has signed a preliminary strategic cooperation agreement with OSX Brasil for the charter of exploration and production units, related operation and maintenance services, and expected production targets for the short, medium, and long term.

Offshore staff

RIO DE JANEIRO -- OGX has signed a preliminary strategic cooperation agreement with OSX Brasil for the charter of exploration and production units, related operation and maintenance services, and expected production targets for the short, medium, and long term.

The agreement establishes a mutual right of first negotiation for the construction of production units in Brazil, as well as the charter and operation of the production units by OSX.

OGX and OSX have also agreed to the terms and conditions for the 20-year charter of the FPSO OSX 1, at an average rate of $263,000/day. The charter also covers related operational and maintenance services. The FPSOOSX 1 has a storage capacity of 950,000 bbl and processing capacity of 80,000 b/d, expandable to approximately 100,000 b/d.

01/27/2010

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