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Baseefa Ltd

Chevron fined for 2011 Brazil offshore spill

05 October 2012

Brazil's National Petroleum Agency (ANP) said on September 27 that Chevron Corp paid a fine of 35.1 million reals ($17.3 million) last week for 24 of 25 irregularities relating to the spill in the Frade offshore field in 2011. Some 155,000 gallons of crude are thought to have been released in the November 2011 spill.

Some 155,000 gallons of crude are estimated to have been spilled in the Chevron Frade incident
Some 155,000 gallons of crude are estimated to have been spilled in the Chevron Frade incident

The agency said it granted Chevron a 30% discount because it paid the fine on time and didn't challenge it.

Chevron confirmed it paid the fine and said it will "implement a number of process improvements developed from lessons learned in the incident. Chevron Brasil respects and complies with the laws of the countries in which it operates."

The company said in a statement that "continuous monitoring of the incident area shows no discernible environmental impact to marine life or human health."

On September 28, Brazil's state-run oil company Petroleo Brasileiro said it filed a suit in federal court asking for the suspension of an injunction ordering driller Transocean to cease operations in Brazil until investigations into the spill are completed.

The company said in a statement that the suspension would hurt Petrobras's exploration activities since it is currently using seven Transocean rigs in Brazil.

Earlier in the week, Transocean and Chevron were served injunctions ordering them to suspend operations in Brazil within 30 days because of the Frade field incident.


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