Posts Tagged ‘Brazil’
The Corporate World - Monday, October 7, 2013 9:41 - 0 Comments
Chevron Corp. and Brazilian regulators have reached a $42 million agreement to settle lawsuits demanding more than $20 billion over procedural lapses leading up to a 2011 offshore oil well rupture. This came after several setbacks for prosecutors in the legal battles that have been going on for years. Under the agreement, Chevron will pay 95.2 million Brazilian reals, or just less than $42 million. Co-defendant Transocean Ltd., which operated the offshore reservoir, was absolved of wrongdoing, and will pay nothing.
The release of about 150,000 gallons of oil in the Frade production reservoir off the coast of Rio de Janiero sparked a major crackdown by the Brazilian government. Two separate lawsuits were filed by a Brazilian federal prosecutor in December 2011 and April 2012. The suits sought to shut down all of Chevron’s operations in the region. Both Chevron and Transocean were ordered to halt their operations in Brazil in August 2012 while the government investigated the two spills, but the shutdown was short-lived. Transocean’s ban was eased later that year when the country’s second-highest court allowed activities to continue on nine of the company’s 10 rigs. Restrictions on Chevron were subsequently overturned by an appellate judge.
Authorities also brought criminal charges against 12 Chevron and five Transocean employees, including Chevron Brasil President George Buck, accusing them of obstructing an investigation of authorities, failing to comply with environmental obligations, submitting a false emergency plan and illicit misrepresentation of documents submitted to authorities. Prosecutors alleged that the workers had created a “long-term contamination time bomb” by utilizing pressure above permissible levels, causing fractures in the rock walls that leaked oil into the sea. They also said Brazil’s National Petroleum Agency, or ANP, had discovered major flaws in the equipment at the spill site, which the office called “evidence of the carelessness of Chevron in drilling the oil wells.”
Chevron and Transocean denied the charges and defended both the working condition of the well and their response to the spill. Chevron also voluntarily suspended production at the Frade field in March 2012 as a precaution after discovering a seep in an area unaffected by the initial spill. The accident was allegedly caused by Chevron’s failure to grasp the geology and fluid dynamics of the reservoir, as well as its delay in responding to the blowout, according to a report by ANP. But the company was authorized to resume production in April, and subsequent evidence unearthed by the ANP indicated the oil release was not as severe as expected.
ANP fined Chevron 35.1 million reals for the initial spill. The company did get a 30 percent discount on the fine for paying promptly. It’s possible that environmental authorities from Rio de Janiero’s municipal government could still go after Chevron.
Sources: Andrew Scurria and Law360.com
- Deepwater Horizon Economic Settlement Program Trying to Make Up for Lost Time
- A Report On A Deadly Chemical Leak At A Site In Texas
- The Role of a Trial Lawyer
- Favorite Bible Verses
- Sandy Hook Families File Wrongful Death Lawsuit
- GM Recalls Vehicles For Headlight Problem
- Kiddie Korral Recalls Girls Hoodies With Ponies
- Giggles International Recalls Animated Monkey Toy
- Schneider Electric Recalls PowerPact J-Frame Circuit Breakers
- Wegmans Food Markets Recalls Moody Face Stress Balls
- Dream On Me Recalls Incredible Play Yards
- GCI Outdoor Recalls To Repair Stadium Seats
- Horizon Hobby Recalls HobbyZone Super Cub S Radio-Controlled Aircraft
- Lenovo Recalls Computer Power Cords
- Daikin Recall Air Purifiers Due To Fire Hazard
- Bicycle Helmets Recalled By UVEX Sports Due To Risk Of Head Injury
- Salsa Cycles Recalls Bicycle Forks Due To Risk Of Fall Hazard
- The lawsuit has been settled they are mailing checks out on Jan 31st 2015. You m...
- I am in the same boat going on 3+ years of lost docs, trial paperwork allegedly ...
- Chase continues to do this in Maryland in 2015. I plan to cancel my mortgage an...
- Sorrry .. Last post had incorrect email addy for the lawyer ... It is bill.hopki...
- THIS IS A SERIOUS PROBLEM FORD !!!! ... DO SOMETHING "NOW" TO KEEP YOUR CUSTOMER...
- i need some money...
- I have been working with Wells Fargo modification for 3 years. I completed trial...
- I don't know who you are. I can tell how frustrated you are. Check this out I wi...