Brazil is studying slashing the amount Chevron Corp. (CVX), the second-biggest U.S. oil company, will pay to a fraction of the 40 billion reais ($19 billion) Brazilian prosecutors had sought for a 2011 oil spill.
Brazil’s National Petroleum Agency and the IBAMA environmental agency worked with Chevron to reach a proposed settlement of 311 million reais ($149 million), Gisele Porto, the prosecutor responsible for the case, told reporters in Rio de Janeiro today. The public ministry will analyze the settlement, she said.
“It’s much better to reach a reasonable amount, it would take 10 years to get 40 billion reais,” Porto told reporters in Rio de Janeiro.
Chevron, based in San Ramon, California, was producing about 60,000 barrels a day at the Frade field before shutting it in March to study the geological reasons for a spill from a drilling accident in November 2011. The halt contributed to a decline in Brazil’s oil output this year.
State-controlled oil producer, Petroleo Brasileiro SA (PETR4), a partner at Frade, is heading toward its first yearly output drop since 2004.
Chevron fell 9 cents to $107.82 at the close in New York.
To contact the editor responsible for this story: James Attwood at email@example.com