The Brazilian prosecutor who filed a 20B reais ($10.8B) lawsuit against Chevron (CVX) and...


The Brazilian prosecutor who filed a 20B reais ($10.8B) lawsuit against Chevron (CVX) and Transocean (RIG) now says he’s seeking a “permanent” ban on their operations in the country. Previous fines in the millions of reais against other oil companies haven’t been enough to discourage accidents, he says, so "Brazil has to change the paradigm from millions to billions."

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Comments (8)
  • Playing the Ponzi
    , contributor
    Comments (143) | Send Message
     
    Maybe that's why RIG is breaking under the $41ish support that held in both 2008 and 2010. Sure is bearish to see such significant support giving way.
    15 Dec 2011, 04:40 PM Reply Like
  • Cherry Picker
    , contributor
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    This is protectionism under the guise of environmentalism. Punish the internationals to the point that no one is willing to take the chance of investing in exploration and production so that the quasi-state owned Petrobras can have the playing field to itself.
    15 Dec 2011, 04:51 PM Reply Like
  • Cincinnatus
    , contributor
    Comments (6187) | Send Message
     
    Don't know anything about the Brazilian legal system but this prosecutor makes it appear as if it is very corrupt. The spill was 3000 barrels. To put it in context I found the following:

     

    "A 2003 study by the National Research Council and a 2009 report by oil spill expert Dagmar Schmidt Etkin indicate that between 560,000 and 1,400,000 barrels per year (1,534 to 3,835 barrels per day) seep into the Gulf of Mexico from natural sources."

     

    This spill is in deep water in the open ocean and should easily have dissipated and is thus far less an environmental hazard than the Deepwater Horizon spill.

     

    This is simply governmental extortion.
    15 Dec 2011, 07:44 PM Reply Like
  • untrusting investor
    , contributor
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    Amazing stuff.
    21 Dec 2011, 11:08 PM Reply Like
  • maudie
    , contributor
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    Bye bye, Brazil. Hello Venezuela.
    16 Dec 2011, 07:56 AM Reply Like
  • Arthur Fisher
    , contributor
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    What a goose! Typical blackmail by local dwarfs. It's a big world out there. It seems unlikely that the government of Brazil is going to allow this turkey to disrupt the pace of development.
    16 Dec 2011, 08:07 AM Reply Like
  • Cincinnatus
    , contributor
    Comments (6187) | Send Message
     
    I'm not so sure. At the national level they've become very protectionist. VALE and Petrobras have pretty much been taken over by the government and are being run to suit the populist whims of the politicians.
    16 Dec 2011, 03:09 PM Reply Like
  • Oldoilguy
    , contributor
    Comments (3) | Send Message
     
    Be very wary about investments in Brazil. They are following a nationalism/protectionism model that will lead them to look like Mexico (in the best case) or Venezuela (in the worst case) in the next few years. Oil production will fall, followed by the economy as they become a true "petrostate" and start to suffer from the "resource curse."
    16 Dec 2011, 11:48 AM Reply Like
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