The flagship corporation of Brazilian mogul Eike Bautista, OGX Petroleo e Gas SA, is in negotations to sell off its 40% shareholdings to Russia's Lukoil. The sale also involves the Malaysian state backed oil firm Petronas.

The news paper Folha de S. Paulo reported the subsidiary of the financially beleaguered EBX Group was already in advanced stages of negotiations with Lukoil. The second larges crude oil producer in Russia is interested in setting up shop in Brazil to become a player in the off-shore reserves just found off the shores of the South American Giant.

OGX has oil interests in the Campos Basin of Rio de Janeiro and in Tubarao Martelo oil field. The 40% shareholdings in the latter oil field are being sold to Petronas for a reported US$1 billion. 

The sales would help shore up the cash flow standings of the company, which last year showed Batista snapping up US$1 billion in stock to keep the company afloat.