Bloomberg News

Chevron Brazil Output Drops 15% After Oil Spill Prompted Ban

February 03, 2012

(Updates with spill volume in third paragraph, ranking in fifth paragraph.)

Feb. 2 (Bloomberg) -- Chevron Corp.’s monthly output in Brazil dropped 15 percent after the second-largest U.S. oil producer was banned from drilling at an offshore field where crude was spilled.

Output at the company’s wells in the South American country dropped to 67,254 barrels of oil equivalent in December from 78,743 in November, according to data on the Brazilian petroleum regulator’s website. Production fell 12 percent from a year earlier.

A leak at Chevron’s Frade project in the Campos Basin off the coast of Rio de Janeiro on Nov. 7 spilled as much as 3,000 barrels into the Atlantic Ocean. A federal prosecutor filed a 20 billion-real ($11.6 billion) lawsuit against Chevron. The regulator, known as ANP, fined Chevron as much as 150 million reais for three infractions.

The ANP also ordered Chevron to shut one of its 11 production wells and four water injection wells at Frade, the San Ramon, California-based company said Dec. 1.

The output decline pushed Chevron down to third place from second among oil producers in Brazil. The top producer in the month was Petroleo Brasileiro SA and the second-largest was Royal Dutch Shell Plc.

--Editors: Carlos Caminada, Charles Siler

To contact the reporter on this story: Rodrigo Orihuela in Rio de Janeiro at rorihuela@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net


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