FONT-SIZE Plus   Neg

Chevron, Transocean Face $11 Bln Lawsuit In Brazil

A Brazilian federal prosecutor has launched a new lawsuit against oil giant Chevron Corp. (CVX) and driling contractor Transocean Ltd. (RIG) for 20 billion reais ($11 billion) related to a second oil leak occurred at Chevron's Frade field off Brazilian coast in early March.

In December 2011, the country's prosecutors had filed a $10.6 billion lawsuit against Chevron and Transocean for environmental damage caused by an oil spill in November in the Campos Basin, off the southern coastal state of Rio de Janeiro.

The Brazilian prosecutors then claimed that "Chevron and Transocean weren't capable of controlling the damages from a spill of 3,000 barrels of oil, which proves a lack of environmental planning and management"

Chevron had said in March that its unit Brasil Upstream Frade Ltd. has filed to temporarily halt production operations in Brazil after "a small new seep" was identified at the Frade Field in the Campos Basin. Frade field is the largest foreign run oil field in Brazil.

In the latest lawsuit, prosecutor Eduardo Santos de Oliveira also seeks to stop operations at Frade and prevent the U.S. oil company from transfering profits made in Brazil. It also seeks to prevent the company from moving equipment out of the country and receiving finance supported by the government.

CVX closed on Tuesday at $107.14, down from the prior close of $108.30, on a volume of 4.69 million shares.

Transocean is currently falling 2.12 percent in Zurich to 47.79 francs.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Earnings at banking giant JP Morgan Chase (JPM) jumped more than 20% compared to last year, despite a decline in revenue. The firm's bottom line received a boost from about $2 billion in tax benefits. Computer chip maker Intel (INTC) announced earnings for the third quarter that slipped about 6 percent from last year. Still, the bottom line came in above the amount predicted by market analysts, as Wall Street had predicted a more pronounced decline. Intel benefited from gains in its Data Center and Internet units, but saw year-over-year weakness in its Client Computing division. Starbucks is rolling out its delivery service - good news for any caffeine addicts who can't make it out to the coffee chain. Unfortunately, there's still a wait in store for most people: the new service only covers Manhattan's most recognizable skyscraper. According to multiple media reports, Starbucks' pilot program is launching at the Empire State Building in New York City.
comments powered by Disqus
Trade CVX now with 
Follow RTT