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Latino Daily News

Saturday July 21, 2012

Oil Leak in Brazil May Cost Chevron $24.7 Million

Oil Leak in Brazil May Cost Chevron $24.7 Million

Photo: Chevron's spill in Brazil

Click Here to Enlarge Photo

Brazil’s National Petroleum Agency said Thursday that Chevron Corp. will be fined nearly 50 million reais ($24.7 million) for an oil leak at an offshore field last November.

The U.S. oil supermajor was found to have committed 25 infractions, each of them subject to a fine of up to 2 million reais, agency officials said at a press conference, while noting that Chevron’s prior good record in Brazil will be taken into account in determining the precise amount of the penalty.

The agency, known by the Portuguese initials ANP, says 3,700 barrels of crude have leaked from the Frade field, located 120 kilometers (75 miles) off the coast of Rio de Janeiro state.

“The accident could have been avoided if Chevron had complied with the (Brazilian) norm and its own manual,” ANP director Magda Chambriard said.

She said a 68-page report detailing each of Chevron’s 25 regulatory infractions will be released Friday.

The San Ramon, California-based multinational is the operator of the field with a 51.74 percent stake, while Brazilian state-controlled oil giant Petrobras and Japan’s Frade Japao Petroleo have 30 percent and 18.26 percent interests, respectively.

Frade lies in the Campos basin, where nearly 90 percent of Brazil’s oil and gas is extracted.