Brazil prosecutor files criminal charges in Chevron oil spill case
By JEFF FICK
A federal prosecutor in Brazil will file criminal charges Wednesday against executives from US oil major Chevron and drilling-rig operator Transocean, charging the employees with environmental crimes related to an offshore oil spill in November.
The prosecutor, Eduardo Santos de Oliveira, said in a telephone interview Monday that after an extensive investigation "there exists information and evidence that criminal conduct occurred" by employees at the two companies before, during and after the November drilling accident that caused an estimated 2,400 to 3,000 bbl of oil to seep from the seabed at Chevron's Frade field.
Transocean was operating the rig responsible for the well where the accident took place.
Some 12 Chevron and five Transocean employees will be charged with environmental crimes that carry potential prison terms of between two and five years, Oliveira said.
A federal judge will then decide whether to bring the charges to trial.
The 17 employees have been barred from leaving Brazil without permission while the criminal case proceeds after Oliveira obtained an injunction over the weekend.
The criminal case will follow what some, including Chevron, have considered a heavy-handed response to a relatively small incident, given that the Frade leak pales in comparison to the estimated 4.9 million bbl that gushed from the runaway well at BP’s Macondo field in the US Gulf of Mexico.
But Oliveira downplayed criticism of Brazil's response.
"I've heard the criticism, but I believe that the response from Brazilian authorities has been proportional to the case," Oliveira said. "We're acting in strict accordance with Brazilian law."
Chevron, Transocean and executives from the two companies already face an $11 billion civil lawsuit filed in January by Oliveira, as well as hefty fines from regulators related to the spill.
Brazil's National Petroleum Agency, or ANP, also suspended Chevron's drilling rights in the country.
"There exists no judicial or factual motive on the part of federal prosecutors for any company to be immune [to charges]," Oliveira said. "If a company causes pollution in Brazil, it is going to be charged."
State-run energy giant Petroleo Brasileiro, or Petrobras, is also drawing scrutiny from federal prosecutors for a recent spate of accidents, Oliveira said.
Petrobras suffered three accidents that caused oil spills over a month-long period between January and February, including a 30-bbl spill at the P-43 platform in the Campos Basin.
Petrobras also had a 70-liter spill at the Urugua field and a 160-barrel spill at the Carioca Nordeste pre-salt field, both in the Santos Basin.
Last week, Chevron revealed that fresh seeps of oil were coming from the seabed near the site of November's leak at Frade, in Brazil's offshore Campos Basin.
During an overflight Friday, Chevron officials and Brazil's Navy spotted a thin, one-kilometer-long oil sheen on the Atlantic Ocean's surface.
The Navy is currently in the process of scheduling an overflight of the area for Tuesday or Wednesday, a Navy spokeswoman said.
In addition, Chevron officials asked local regulators for permission to halt output at Frade, which had been producing about 61,000 bpd.
Chevron made the request to study the "geological complexity" of Frade, which holds recoverable reserves of between 200 million and 300 million bbl of oil.
The seep was first discovered March 4, with Chevron notifying Brazilian authorities on March 13, the company said.
Oil from the seep is being captured by specially built containment devices, Chevron said Saturday.
Additional containment devices will be installed as needed, the company added.
Dow Jones Newswires
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