Brazil Oil Leak to Cost Chevron $25 million

Brazil’s National Petroleum Agency said Thursday that Chevron Corp. will be fined nearly 50 million reais (approximately $25 million) for an oil leak at an offshore field last November.

The U.S. oil producer was found to have committed 25 rules violations, 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 rules and its own guidelines,” ANP Director Magda Chambriard said. She also said a 68-page report detailing each of Chevron’s 25 rules violations will be released later.

The San Ramon, California-based multinational is the operator of the field with a 52% stake, while Brazilian state-controlled oil giant Petrobras and Japan’s Frade Japao Petroleo have 30 percent and 18% interests, respectively.

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

CFI

Recent Posts

The Big Themes from Money20/20: Why Banks Are Back, AI Is a Risk, and Financial Inclusion Finally Matters

By Alessandro Hatami, European banking innovation expert and co-author of Reinventing Banking and Finance and…

2 weeks ago

Net Zero: OECD Report Sets the Record Straight on Economic Benefits

For years, a persistent argument has loomed over the push for net zero: that transitioning…

2 weeks ago

CORDET Capital: Unlocking the Potential of Northern Europe’s Lower Mid-Market

With a sharp focus on delivering compelling risk-adjusted returns, CORDET Capital has positioned itself as…

2 weeks ago

Uzbekistan Investment Forum: Economic Momentum Meets Strategic Maturity

Attend enough investment forums and they begin to blend into one another. The Fourth Tashkent…

2 weeks ago

Tashkent’s Turning Point: Why the Time is Now for Global Investors in Uzbekistan

As Uzbekistan accelerates its transformation from a closed economy to a liberalised investment destination, the…

3 weeks ago

BIAT: Strengthening Market Leadership Through Innovation, Digitalisation, and Responsible Governance

BIAT continues to assert its dominance in the Tunisian financial market, reinforcing its resilience with…

3 weeks ago