Skip to comments.Brazil Sues Chevron for $11 Billion
Posted on 12/15/2011 8:09:12 AM PST by Just4Him
SAO PAULOA Brazilian federal prosecutor on Wednesday asked a judge to shut down all Chevron Corp. and Transocean Ltd. operations in Brazil in a lawsuit that seeks some 20 billion Brazilian reais ($11 billion) in damages from the companies, the latest legal broadside to the firms since oil leaked from a well they operate in early November. In a statement announcing the lawsuit, the prosecutor's office in Campos, a city in Rio de Janeiro state, said Chevron and Transocean "showed a lack of planning and environmental management," by allowing the leak, which authorities say allowed at least 2,400 .
(Excerpt) Read more at online.wsj.com ...
WOW WHAT A DEAL.
Obama gives them billions to develop their own oil industry and now they plan on getting 11 million from Chevron and take over their oil works.
Boy Obama really IS out to destroy America. He is hell bent on bleeding the life blood of american industry like a vampire.
If I were Chevron....I’d pull out of Brazil, pronto.
THANKS FOR THE CORRECTION!!
Obama: Drill, Brazil, Drill!
While leaving U.S. oil and jobs in the ground, our itinerant president tells a South American neighbor that well help it develop its offshore resources so we can one day import its oil. WHAT?!?
We will help Brazil develop its offshore oil so we can one day import it.
We have noted this double standard before, particularly when at a time when the president was railing against tax incentives for U.S. oil companies we supported the U.S. Export-Import Banks plan to lend $2 billion to Brazils state-run Petrobras with the promise of more to follow.
Now, with a seven-year offshore drilling ban in effect off of both coasts, on Alaskas continental shelf and in much of the Gulf of Mexico and a de facto moratorium covering the rest Obama tells the Brazilians:
We want to help you with the technology and support to develop these oil reserves safely. And when youre ready to start selling, we want to be one of your best customers.
Plug the wells first.
We know what Obama’s gonna say. “Look at all the pollution I spared the waters off our coast by banning drilling here and giving Brazil a couple of billion dollars to encouraging drilling off their coast.”
I believe the formerly very Christian Brazil now has a lot of dealings with Muslim countries.
What part of foreign interests taking over the Federal Government did you miss?
It appears Brazil is first trying to play in around in public opinion to see how it flies.
Chevron Responds to Reported Lawsuit By Federal District Attorney in Campos, Brazil.
SAN RAMON, Calif., December 14, 2011 Chevron Corporation (NYSE: CVX) said a Brazilian federal district prosecutor has told reporters that he will file a civil lawsuit against Chevron and other companies seeking a reported 20 billion reais ($10.7 billion) in damages, and an injunction stopping Chevron’s activities in Brazil. Chevron has not received any formal notice of this action. Chevron also has not received any instruction from the regulatory agencies with oversight responsibility for our activities in Brazil regarding suspension of our operations.
From the outset, Chevron responded responsibly to the incident at its Frade Field and has dealt transparently with all Brazilian authorities. The flow of oil from the source was stopped within four days and the company continues to make significant progress in containing any residual oil. Chevron has also continued to address the surface sheen, which is now less than a single barrel. There have been no coastal or wildlife impacts.
Chevron is one of the world’s leading integrated energy companies, with subsidiaries that conduct business worldwide. The company is involved in virtually every facet of the energy industry. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.
Brazil Overreacts To Chevron Oil Spill With $11 Billion Suit
Chevrons spill at the Frade field was roughly 3,000 barrels, and there has been no impact on the coastline. Compare that with the roughly 5 million barrels spill at BPs Macondo blowout, which covered Gulf Coast beachers.
And vitally, no one died in Chevrons spill, versus the 11 killed when the Deepwater Horizon blew up.
BP will likely end up paying around $10,000 per barrel spilled (assuming $50 billion in eventual fines and payments). Chevron and Transocean, if this $11 billion suit were to hold up, would be on the hook for more like $3.5 million per barrel.
Virtually no oil drillers will be willing to take the risks of drilling in Brazilian waters given even an outside chance of being saddled with such fines. Analysts at Tudor, Pickering & Holt, in a note this morning, figure that Chevrons assets in Brazil are worth $4.2 billion, far less than the suit calls for.
And level all their facilities, and plug the wells with concrete to great depths.
...and tell George Soros to go pound sand.
So, they could be nationalized as a settlement. Nice move, Brazil.