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ANP: Chevron has paid Frade oil spill fine

BY JEFF FICK

RIO DE JANEIRO -- Brazilian oil regulators said that Chevron has already paid off fines related to an offshore oil spill last year, receiving a 30% discount for not appealing the fine.

ANP had levied a fine of $17.3 million against Chevron, ANP Director Magda Chambriard said earlier this month. Chevron confirmed it paid the fine, within 10 days of notice of the fine to take advantage of the discount.

Payment of the fine completes "the administrative procedure for the incident with the agency," Chevron said. "Chevron Brasil will implement a number of process improvements developed from lessons learned in the Frade incident."

The fine covered 24 of the 25 sanctions the ANP issued Chevron earlier this year for the spill at the company' s Frade offshore oil field. An estimated 3,700 barrels of crude oil seeped from cracks in the seabed after a drilling accident at the field. The fine could be increased by an additional $0.98 million when a decision is made on the remaining infraction, Ms. Chambriard said.

Chevron said it hasn' t yet been notified of any additional fines.

Transocean, which operated the drilling rig, was cleared of any wrongdoing in the spill.

Both Chevron and Transocean, however, face criminal and civil lawsuits related to the spill. The two companies also said earlier that they had been served with injunctions forcing them to stop operating in Brazil within 30 days. Chevron and Transocean said that they will seek to have the injunction overturned.

The ANP is also appealing the injunction, citing the potential economic and safety impact of the ban, as well as its role as the sole overseer of the country' s oil industry.

Dow Jones Newswires

09/28/2012

 

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