Bloomberg News

Petrobras Shuts Fifth Most Productive Well After Accident

February 01, 2012

(Updates to include production volumes in second paragraph.)

Jan. 31 (Bloomberg) -- Petroleo Brasileiro SA, Brazil’s state-controlled oil producer, shut its fifth most productive well after detecting a leak of 160 barrels in deep waters of the Atlantic Ocean.

Petrobras, as the Rio de Janeiro-based producer is known, spilled from the production column at the Carioca Nordeste well before shutting output, the company said today in an e-mailed statement. The well produced 25,034 barrels a day, or 1 percent of Petrobras’ domestic output in November, according to the country’s oil regulator.

The Carioca field is part of the so-called Santos Cluster that holds the largest oil fields discovered in the Americas in more than three decades. Petrobras is developing fields in more than 2,000 meters (6,562 feet) of water in a bid to more than double output by 2020.

Petrobras is collecting the spilled oil and investigating the causes of the accident, the company said. Petrobras rose 0.1 percent to 24.60 reais in Sao Paulo at 4:31 p.m. The stock is up 14 percent this year, more than the 11 percent gain in the benchmark stock index.

Chevron Corp., the second-largest U.S. energy company by market value, was fined and ordered to halt all drilling and crude production off Brazil’s coast after discovering a leak on Nov. 7. Chevron, operator of the offshore well that triggered the leaks, estimated the volume of the seeps at 3,000 barrels.

--Editors: Robin Saponar, Dale Crofts

To contact the reporters on this story: Lucia Kassai in Sao Paulo at lkassai@bloomberg.net; 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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