A federal court in Brazil on Aug. 1 ordered Chevron and drilling company Transocean to suspend all oil drilling in the country within 30 days in the wake of two oil spills off the coast of Rio de Janeiro. A judge for Brazil’s Regional Federal Court of the Second Region ruled that each company must pay 500 million reals, or $244 million, for every day that they do not comply with the suspension. In November, a Chevron appraisal well leaked 155,000 gallons of oil. In March, oil started leaking again from the well and Chevron suspended production in that oil field. In its ruling, the court rationalized that two oil spills in the span of four months demonstrated that Chevron and Transocean cannot operate the wells safely. Chevron plans to appeal the ruling, saying that it complied with all applicable laws and industry standards.
From Jurist, Aug. 3. Used with permission.
See our last post on Chevron and the politics of oil spills.