BRASILIA (Reuters) - Brazilian oil company OGX, which is in bankruptcy and controlled by former billionaire Eike Batista, said on Monday that Malaysia's Petroliam Nasional Bhd (PETR.UL) (Petronas) had rescinded a deal to buy a 40 percent stake in two of its oil blocks.

OGX Petróleo e Gas Participações SAm said in a filing that it is analyzing taking legal action against Petronas. OGX filed for bankruptcy protection on October 30 and day later warned that it expected to end up in arbitration over the deal struck with the Malaysian state oil company.

The companies announced the deal, originally valued at $850 million, in May. Petronas was to take a stake in two offshore Brazilian oil blocks, potentially throwing a lifeline to Batista as he sold off parts of his industrial empire to pay down debts.

Petronas had set as pre-condition for the deal that OGX restructure its debt.

(Reporting by Luciana Bruno; Writing by Alonso Soto; Editing by Bob Burgdorfer)