Chevron halts Brazil production after new leak
Source: Reuters
Chevron halts Brazil production after new leak
By Jeb Blount and Sabrina Lorenzi
RIO DE JANEIRO | Thu Mar 15, 2012 5:06pm EDT
(Reuters) - Chevron filed to temporarily halt production operations in Brazil on Thursday after it detected a "small new seep" of oil in the same offshore field where it suffered a high-profile leak in November.
The U.S. oil company said it was taking the step as a precautionary measure to study its "reservoir management plans" in Brazil, where it has spent over $2 billion developing the largest foreign-run oil field.
The announcement came after Chevron and Brazil's petroleum regulator ANP identified a new oil leak in the Frade field off the northeastern coast of Rio de Janeiro where Chevron spilled an estimated 2,400 to 3,000 barrels in November.
The request to suspend output came on the same day that the ANP said it had notified Chevron that it would be fined an undisclosed amount for failing to prevent seepage at the site. Chevron is already facing fines of up to $121 million for the November spill and has had its drilling license suspended in Brazil, one of the world's most promising new oil frontiers.
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Read more: http://www.reuters.com/article/2012/03/15/us-chevron-brazil-idUSE4E7HR02620120315
