Brazil probes Chevron over spill

Brazilian regulators are investigating Chevron over an oil spill off the coast of Rio de Janeiro, sending off warning signals about the country’s ambitious deepwater drilling plans.

The US energy group has rushed to concrete over one of its wells at its Frade project, 230 miles north of Rio, which it has said was responsible for releasing as much as 650 barrels of oil into the sea.

ANP, Brazil’s oil and gas regulator, has launched a probe of the spill which the government said on Thursday could lead to legal action. Newspaper Folha de S.Paulo has reported that federal police have also opened a probe into Chevron over conflicting information provided over the clean-up operation.

Brazil is at a crucial stage in the development of Rio de Janeiro’s ‘pre-salt’ reserves, estimated to contain up to 50bn barrels of oil and expected to accelerate the whole country’s development but which environmentalists warn also carry huge risks.

“This leak, as well as the Gulf of Mexico oil spill, should help to keep us alert about the risks so we make sure we have the best technology and security systems in place,” said Marina Silva, Brazil’s former environment minister, in an interview with the Financial Times.

Chevron said it had suspended drilling activities in the area and was continuing to work on plugging the leaks with its contractor, Transocean.

The company added that the oil sheen on the ocean surface was now estimated at less than 65 barrels and was moving away from the coast.

Although Chevron’s oil spill is relatively small, the episode brings back memories of last year’s disaster further north in the Gulf of Mexico, where the largest ever accidental oil spill killed 11 men and caused widespread damage.

Along with BP, Transocean was also found by official enquiries to have been at fault over the accident.

“We need more visibility in this industry, such as independent inspections, and greater investments to avoid causing damage,” Ms Silva said, adding that more of the proceeds from the pre-salt reserves should be spent on developing alternative energy technology.

Chevron declined to comment on whether it was under police investigation but added that it “continues to fully inform and work with Brazilian government agencies and industry partners on all aspects of this matter”.

The Folha de S.Paulo reported that Chevron had told the police 18 of its ships were looking after the clean-up operation, whereas officers had only seen one at work in the area.