Chevron expects to restart Frade production this week
RIO DE JANEIRO -- Brazilian state-run oil company Petroleo Brasileiro, or Petrobras, said that an offshore oil field operated by U.S. oil major Chevron shuttered since March 2012 because of an oil spill could restart production this week.
Chevron is in the final stages of obtaining authorization from local oil regulators and should open the taps "this week," said Jose Miranda Formigli, Petrobras's exploration and production director. "Obviously, as a partner in the field, we're very interested in the return of this production."
Petrobras expects to receive an average of 4,500 bopd as the company's share of output at the field, Mr. Formigli said. Petrobras holds a 30% stake in the Frade field, while Chevron operates the field with a 51.7% stake. The remaining 18.3% share is held by a consortium of Japanese firms.
Frade was the site of a drilling accident in November 2011 that caused an estimated 2,400 to 3,700 bbl of oil to seep into the Atlantic Ocean via cracks in the seabed. In March 2012, Chevron shut down production at the field after seeps appeared in another area of the field. Both Chevron and rig operator Transocean (RIG), which denied any wrongdoing in the accident, faced criminal and civil lawsuits for their roles in the oil spill.
Dow Jones Newswires