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Article

22 Nov 2011

Author:
Al Jazeera

Chevron fined $27m for Brazil oil spill

Oil giant Chevron has been fined $27m by the Brazilian government for causing an offshore oil spill, but the penalty could rise as the US company faces a political backlash over the accident. The fine...comes a day after Chevron accepted full responsibility for the leak of 2,400 barrels at the Frade oil project, 370km off the coast of Rio de Janeiro. The accident at the field, owned in partnership with Brazil's state-controlled oil company Petrobras and a Japanese consortium, had slowed to a "residual" flow, said Haroldo Lima, head of Brazil's National Petroleum Agency (ANP). At it's height, the leak - which began on November 7 after a rupture in the well's structure - released 200 to 330 barrels per day...[A]dditional fines could be levied against Chevron if a federal investigation reveals further infractions. Magda Chambriad, director of ANP, told reporters at a news conference on Monday that Chevron could face two additional fines of up to $27m each.