OGX Petroleo e Gas SA, the Brazilian oil company, has allayed fears and rumors that it is selling its shareholdings in Petronas, the Malaysian state owned oil company. The rumors started floating about such divestment because of the current market volatility.

The filing with regulators was done to 'clarify' speculative rumors about an impending sale to a foreign investor after shares of Petronas increased by 12 percent Thursday and 9 percent Friday before returning to pre increase levels. Most of the shares that had increased were owned by billionaire Eike Batista.

In a statement, OGX is 'weighing business opportunities with various investors' but assured investors that 'there is no consummated deal that should be communicated to the market.'

Last Friday, OGX shares were down 0.28 percent to 3.59 reals at market close. The company has been undergoing a number of losses in the past few months, one of them lower than projected oil output from its wells. This was utilized to fan the flames of the Petronas sales rumors.