Chevron, Transocean Facing Massive Lawsuit for Oil Spill in Brazil

Reuters today reported that Brazilian prosecutors have filed a lawsuit against oil major, Chevron, and the world’s biggest offshore drilling contractor, Transocean, over their roles in an oil leak near the Frade field, off the coast of Rio de Janeiro, which occurred in November.

Chevron has already been fined $28 million for the spill, but now the companies are facing a $10.6 billion lawsuit.

The Federal Prosecutor asked the Federal Court to order Chevron and Transocean to pay a compensation of $10.6 billion for environmental damages made by the spill.

The prosecutor also asked that all the companies’ activities be banned until the matter is resolved.

According to Brazilian newspaper O Globo, the state prosecutor Eduardo Santos de Oliveira accused Chevron and Transocean of not being able to control the damage caused by the spill, and also for the lack of planning and environmental management.

On the other side, Chevron said it has not received any formal notice of the lawsuit. The company reiterated that „Chevron responded responsibly to the incident at its Frade Field and has dealt transparently with all Brazilian authorities. The flow of oil from the source was stopped within four days and the company continues to make significant progress in containing any residual oil.“

Chevron also highlighted the fact that the spill has made no coastal or wildlife impact.

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Offshore Energy Today Staff, December 15, 2011