Brazil: Chevron Pays $41.6 Mln in Frade Spill Settlement

The settlement was reached on Friday, September 13, between the oil company and the Ministério Público Federal (MPF) to resolve the two public civil actions brought by MPF.

Transocean, the owner of the drilling rig involved in the incident, the Brazilian National Agency of Petroleum, Natural Gas (ANP) and Instituto Brasileiro do Meio Ambiente e Recursos Naturais Renováveis (IBAMA) also signed the agreement.

“We are satisfied with the resolution of these claims and remain committed to our policy of transparency and close collaboration with the Brazilian authorities” said Chevron Brasil’s President, Eunice de Carvalho.

The first spill occurred in November 2011, when approximately 3000 barrels of crude was spilled into the ocean.  The incident happened during an appraisal well drilling from the Transocean-owned SEDCO 706 rig in the Frade oil field, about 120 km offshore Brazil. In the same month ANP said that Chevron didn’t have equipment in Brazil considered vital to stop the leak and sent edited photographies, attempting to cover up the real size of the spill. As a consequence, Chevron was slapped with a $28 million fine.

In March 2012, Chevron informed authorities of another seep at the location and voluntarily shut the production. The company restarted production at the field in the Campos Basin, on April 30, 2013 after receiving the green light from ANP and IBAMA.

Chevron has a 51.74 percent operating interest in the Frade Field. Other partners in the project are Petróleo Brasileiro S.A. – Petrobras, 30 percent; and Frade Japão Petróleo Ltda., a joint-venture company of INPEX, Sojitz and JOGMEC, 18.26 percent.
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Offshore Energy Today Staff, September 17, 2013