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Chevron's Brazilian $42M spill lawsuit settlement a far cry from $20B

  • Chevron (CVX) agrees to pay 95.2M Brazilian reais ($42M) to settle lawsuits related to the Frade offshore oil spill in 2011, WSJ reports, a far cry from the $20B in damages Brazilian federal prosecutors originally sought.
  • The value of the settlement fell after government regulators concluded spill damage wasn't as bad as thought, the prosecutor says; the agreement will be presented to a judge, who can approve or reject it but can't alter the financial terms.
  • The settlement represents an "amicable resolution," a CVX official says, adding that CVX is studying details of the upcoming Libra auction and has until Sept. 18 to express its interest.
  • Transocean (RIG), which was operating the rig on CVX's behalf at the time of the accident, won't make any payment, according to the agreement.
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Comments (4)
  • Michael Fitzsimmons
    , contributor
    Comments (9773) | Send Message
     
    I suggested in my article Chevron: The Best Integrated Oil Company In The World:

     

    http://bit.ly/Z20eo7

     

    that this case would be settled for millions and not billions. The $42 million is less than Chevron offered ($150 million) in December of last year. Big win for Chevron. Big for Brazil too, cause they need Chevron engineering and technology to get at those pre-salt deposits. Big question mark lifted off CVX's shoulder.
    13 Sep 2013, 05:49 PM Reply Like
  • FleetUSA3226
    , contributor
    Comments (854) | Send Message
     
    Will Ecuador get the message too?
    14 Sep 2013, 09:46 AM Reply Like
  • Chirag Amin
    , contributor
    Comments (38) | Send Message
     
    Equally as big a win (if not bigger) for Transocean (RIG), which skates away free after several of their workers were detained in Brazil and facing potential criminal charges immediately following this incident. So when can we expect Brazil's Frade field return to pre-spill production levels?
    13 Sep 2013, 09:15 PM Reply Like
  • Michael Fitzsimmons
    , contributor
    Comments (9773) | Send Message
     
    According to Reuters:

     

    http://reut.rs/15ZKScs

     

    Chevron is producing 15,000 to 16,000 barrels per day of crude on average from Frade. Before the accident, Frade had been producing 60,000 barrels a day and has a capacity of around 100,000 bpd.
    14 Sep 2013, 08:05 AM Reply Like
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