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Chevron Didn’t Report Gas Operation, Brazil Regulator Says

December 01, 2011

(Updates with comments from Chevron in third paragraph.)

Dec. 1 (Bloomberg) -- Chevron Corp. didn’t report to Brazil’s oil regulator that hydrogen sulfide was mixed with the crude it was producing at a well in the Frade field off the coast of Rio de Janeiro, said Magda Chambriard, a director at the regulator.

The gas was discovered when ANP, as the regulator is known, started investigating an oil spill at the well last month, Chambriard said at an event in Rio de Janeiro today, according to the regulator’s press office.

Chevron said ANP ordered it to close down one of its 11 production wells and four water injection wells at the offshore field, according to a statement distributed by Business Wire.

“The production well cited by the ANP accounts for less than 10 percent of Frade’s total production of about 79,000 barrels per day,” Chevron said in the statement.

Chevron was fined 50 million reais ($27.8 million) by Brazilian environmental authorities for the spill, which occurred Nov. 7 about 230 miles (370 kilometers) northeast of Rio de Janeiro. An estimated 3,000 barrels leaked, Haroldo Lima, head of Brazil’s oil regulator, Agencia Nacional do Petroleo, said Nov. 22.

The company said in today’s statement that it’s working with Brazilian government agencies to address issues related to its operations in the country.

--Editors: Jose Sergio Osse, Jonathan Roeder

To contact the reporter on this story: Adriana Brasileiro in Rio de Janeiro at

To contact the editor responsible for this story: Helder Marinho in Sao Paulo at

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