Brazil Oil Regulator Fines Chevron for Third Time for Spill
Brazil’s oil regulator fined Chevron Corp. (CVX) for the third time for not properly managing an offshore oil field that leaked last month.
Chevron didn’t comply with the development plan for the Frade oil field off the coast of Brazil, the Agencia Nacional do Petroleo, Gas Natural e Biocombustiveis, known as ANP, said on its website today. The company didn’t have the proper measures in place to protect the reservoir at a well that leaked about 3,000 barrels of oil, the ANP said.
Chevron will analyze the allegations cited in the ANP’s notification, Scott Walker, a spokesman for the San Ramon, California-based company, said in an e-mail. Chevron followed the oil industry’s best practices and acted “within the plan of development approved by ANP,” Walker said.
The ANP didn’t specify the amount of the fine. The regulator took action against Chevron in November for not complying with a plan to close down the well and not providing complete videos of the oil spill. Each of the first two fines may be as much as 50 million reais ($26 million,) Magda Chambriard, a director at the ANP, said Nov 22.
ANP officials weren’t available for comment.
To contact the reporter on this story: Peter Millard in Rio de Janeiro at pmillard1@bloomberg.net
To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net
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