03 August 2012

Brazil court clamps down on oil producers

A Brazilian court has banned US oil giant Chevron and drilling company Transocean from producing or transporting oil until an investigation into an offshore spill is completed.

The injunction forces the companies to halt activities for 30 days or face daily fines of reais500 million ($250 million), reports US broadcaster Fox Business. The order is the latest twist in an ongoing case involving a drilling accident last November at the Chevron-operated Frade offshore oil field. The spill saw around 3,700 barrels of crude oil seep from cracks in the seabed.

Chevron appeal

In a statement, Transocean said it was evaluating the latest development, but added that the case was ‘without merit’ and that the company would ‘use every legal means necessary to prove it’.
Chevron said that it would appeal the ruling. ‘Chevron Brazil is confident that at all times it acted diligently and appropriately,’ the company said in an e-mailed statement, according to Fox. The company maintained that it continues ‘actively’ to prepare to restart production at Frade.

Email your news and story ideas to: news@globallegalpost.com