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

|About: Chevron Corporation (CVX)|By:, SA News Editor

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.