Chevron Appeals Drilling Ban in Brazil

Chevron Appeals Drilling Ban in Brazil

U.S. oil company Chevron has appealed against the Brazil’s court decision to ban all drilling activities by Chevron and Transocean in the largest South America’s country.

The court ordered the oil company and the drilling contractor to halt all drilling operations in Brazil due to their involvement in the Frade oil spill incidents which occurred in November 2011 and March this year, respectively.

In a statement sent to Reuters Chevron said: “Chevron’s response to the incident was implemented according to the law, industry standards and in a timely manner.”

It has been reported that the Swiss based drilling contractor and the owner of the rig involved in the incident, Transocean, will also appeal the ban.

Chevron in March suspended production operations at the Frade Field in the Campos Basin in Brazil, and the output has been closed ever since.

Chevron has a 51.74 percent operating interest in the Frade Field. Other partners in the project are Petróleo Brasileiro S.A. – Petrobras, 30 percent; and Frade Japão Petróleo Ltda., a joint-venture company of INPEX, Sojitz and JOGMEC, 18.26 percent.

Offshore Energy Today Staff, August 17, 2012