Fines loom for Chevron over Frade oil seep

Chevron Corp. may see fines and possible lost of a license as a fall-out from the deepwater oil seep, reports Dow Jones.

Offshore staff

RIO DE JANEIROChevron Corp. may see fines and possible lost of a license as a fall-out from the deepwater oil seep, reports Dow Jones. While a $28-million fine was levied by the Brazilian Institute of the Environment and Renewable Natural Resources, the National Petroleum Agency (ANP) and Rio de Janeiro state still may assess fines.

The ANP said Chevron did not have key equipment onsite in a timely manner to abandon the well and questioned Chevron’s status as an operator approved to explore in ultra deepwater, which includes the salt play.

Chevron, meanwhile, reports an estimate from Chevron Brasil Upstream Frade Ltda that says 2,400 bbl of oil was emitted starting on Nov. 9.

The surface sheen continues to dissipate and its volume is now less than 18 bbl of oil. Chevron believes no new oil is leaking from the reservoir.

11/23/2011

More in Regional Reports