Regulatory News

The National Petroleum Agency (ANP) issued a 68-page report on the 3,700 barrel oil spill from a Chevron well in Frade Field, located in the Campos Basin off the coast of Rio de Janeiro in November last year. The investigation identified 25 infractions committed by the company which will be fined about R$40 million (US$19 million). Still, the oil company can resume its activities at the accident site.

The request to resume oil exploration in Frade Field will be reviewed by the end of the month. According to the ANP general director, Magda Chambriard, the company should have no problems in returning to production status.

The report noted that Chevron had committed errors in its procedures, not complying with the rules of Brazilian operational safety and its own risk management manual. As the legislation provides for a maximum of R$2 million (US$990,000) per violation, with a total fine at almost R$50 million (US$24 million).

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