Bloomberg News

Chevron Investigated by Brazil’s Oil Regulator, Faces Fines

March 15, 2012

Chevron Corp. (CVX) is being investigated by Brazil’s oil regulator for not meeting the agency’s request for safeguards to avoid new leaks after a November spill at the Frade field off the coast of Brazil.

Chevron faces fines for its handling of the spill after the probe is completed, an official at the agency, who declined to be named because of agency policy, said in a telephone interview.

Chevron has requested permission from the regulator, known as the ANP, to halt production at Frade after a new oil slick of about 5 liters appeared at the field this week, Rafael Williamson, a corporate affairs director at Chevron, said at a press conference in Rio de Janeiro today.

Frade was Brazil’s 12th-largest producing field in January with 65,000 barrels a day in oil and natural gas output, according to information on the regulator’s website. Chevron holds a 52 percent stake in Frade and is the operator. Partners include Petroleo Brasileiro SA (PETR4) with 30 percent and Frade Japao Petroleo Ltda. -- a joint venture of INPEX Corp. (1605), Sojitz Corp. (2768) and JOGMEC -- with 18.26 percent.

Chevron fell 0.6 percent to $110.03 at the close in New York.

To contact the reporter on this story: 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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