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Chevron suffers double jeopardy in Brazil oil-spill case

  • Brazilian judges have reinstated a criminal case against Chevron (CVX) over an offshore oil spill in November 2011 despite the company coming to a $150M settlement with prosecutors just over a year ago.
  • The case may well revive concerns about doing business in Brazil - the prosecutor's office that agreed to the settlement, which led to original charges being dropped - is the one that has worked to re-open the criminal part of the case.
  • Eleven Chevron employees, as well as the company, are the subject of the case; if found guilty, they could face up to 30 years in prison.
Comments (14)
  • chopchop0
    , contributor
    Comments (3122) | Send Message
     
    Guess the economy is tanking more and they can't find enough cash under the couch cushions
    4 Apr, 04:58 AM Reply Like
  • Eric Landis
    , contributor
    Comments (705) | Send Message
     
    South America = black hole of investing.
    4 Apr, 09:23 AM Reply Like
  • pemdas1
    , contributor
    Comments (149) | Send Message
     
    Another Colombian style shake down for CVX, this time in Brazil. Sell all assets there and move on!
    4 Apr, 09:30 AM Reply Like
  • maxflatus
    , contributor
    Comments (7) | Send Message
     
    Why do business in Brazil. It's a rigged game.
    4 Apr, 09:52 AM Reply Like
  • BAHAMAS1
    , contributor
    Comments (1791) | Send Message
     
    Extortion pure and simple.

     

    CVX, Leave the country and let them embarrass themselves in the eyes of the world for their lack of prep & $$ for World Cup and the Olympics which Brazil will fail at !

     

    These countries,Ecuador, Colombia , Brazil, etc. can't have it both ways with extortion being a common part of doing business on top of high entry fees (bribery & corruption) AND taxes.

     

    Life is too short, and companies like CVX have the tech and knowledge that all these 3rd worlders lack. Enough is enough. Let them fend for themselves.
    They'll realize it minimum 6 mths ,if not sooner, when their populations start to revolt which Brazil is now on the cusp.
    4 Apr, 10:05 AM Reply Like
  • Patience29
    , contributor
    Comments (144) | Send Message
     
    Since the prosecutors and judges have obviously been in cahoots, drumming up charges and manipulating this case against CVX since the get-go, it is apparent who the real criminals are.

     

    I especially feel badly for the 11 employees who may well be pawns (hostages, really) used by the Brazilian government, threatening 30-year sentences, in order to force their will upon CVX to give them what they want.

     

    Let this be a lesson to the rest of the international energy community and beyond: steer clear and/or bail out of Brazil...and don't look back. They're not to be trusted.
    Contractual obligations and agreements mean nothing to them.. regardless of any so-called "settlements" they might have signed. Fully executed agreements mean nothing and you can't get any more crooked than that.

     

    If I were Chevron, I'd dismantle all offshore and onshore operations and leave with the materials and equipment... post-payoff to release the eleven employee-hostages.... and chalk it up to lessons learned on how not to deal with an entity with no real legal system in place.
    4 Apr, 01:41 PM Reply Like
  • BAHAMAS1
    , contributor
    Comments (1791) | Send Message
     
    Patience29-
    "No real legal system" because there is NO REAL GOVERNMENT!

     

    Have traveled to Brazil for 25+ years and have seen this unfold numerous times in the past.

     

    Brazil's left wing political system is another Prime example of what happens when you just keep spending other people's $$ to keep the populous "happy".

     

    When you run out of other peoples $$ you have to extort more from wealthy international companies. When that doesn't work ...revolution and another new military backed regime takes over making the same unfulfilled promises.

     

    I'm telling you Brazil is on the cusp of this Now.
    4 Apr, 07:14 PM Reply Like
  • Coolbluelake
    , contributor
    Comments (544) | Send Message
     
    Brazil has turned into a black hole for investors. Best advice: Do not invest in Brazilian stocks.
    4 Apr, 11:15 PM Reply Like
  • hallereugene@gmail.com
    , contributor
    Comments (93) | Send Message
     
    I have to say that Im not familiar with this case. Ive also heard horror stories about Brazilian justice system. With that said, when corporations make a cost benefit analysis of well, we expect x number of people to get killed if we dont do the right thing and it will cost us y, but it will cost us z to the right thing which is a lot more than y. So in the end we will accept human losses because it will be cheaper to the bottom line. In these cases getting judgments against corporations is meaningless.
    Criminal action with jail time is the only answer to instill a level of safety in the corporate structures mindset. And Im not satisfied with some mid level functionary to be thrown under the bus for the good of the corporation. Since the CEO is responsible (the buck stops on his desk no pun intended) have them included in the criminal action.

     

    Whether or not using criminal actions in this case is warranted or not I dont know. But BP certainly is a case were it should have been entertained for top level management.
    5 Apr, 04:35 AM Reply Like
  • spinrbait
    , contributor
    Comments (341) | Send Message
     
    it only responsible to do a cost benefit analysis on all aspects of business. in our personal lives too, for that matter. going by what you say, we shouldn't even have industries where someone may get hurt.
    5 Apr, 09:13 AM Reply Like
  • hallereugene@gmail.com
    , contributor
    Comments (93) | Send Message
     
    I think your missing the point. Im writing about morality. Lets make it even clearer. I am a CEO of a car company. There is a problem with my product that causes harm to a limited number of the owners every year. The problem was found out but was fixed. The car has a use expectancy of 10 years. If we admit a product fault it will cost lets say $100,000,000 to recall all of the affected cars and to pay the injured parties. If nothing is done except to pay legal fees and settlements it might cost $10,000,000 in total until the 10 yr life of the product is reached. Not forgetting that as time goes by less injuries will happen because less product (10 yr life limit) will be on the market.

     

    If I made that call and caused death and injuries yeah, I should be facing criminal charges. So thats why I think top level management, including the CEO of BP, should be facing criminal charges. Its the same driving thought, "get it done (make money) no matter what the cost." Hey we're not in a war and its not the battlefield.

     

    If you want to live in a world where you and your families health ( ie:Love Canal) is determined by a bean counter thats your right. But its not the world I want for my kids.
    20 Apr, 05:31 AM Reply Like
  • BAHAMAS1
    , contributor
    Comments (1791) | Send Message
     
    halle....-
    I realize that you admitted not being "familiar with this case".

     

    This was a minor spill that Brazil's Petrobras(state owned oil company) was also involved in. The case was put on the front pages for a while and then "Settled".
    All parties, including the Brazilian gogernment considered it ...Case closed.

     

    However,No, because the extreme need for $$ by the current failing government sees a potential opportunity to extort more $$ as do the judges (see CVX vs.Ecuador recent N.Y. trial).
    It's that simple.

     

    The people that should be jailed are the corrupt politicians and "judges" who are trying to revive this obvious criminal extortion.

     

    Imo, this should be put under the purview of the World Court for arbitration to stop countries like Nigeria,Colombia,Ecuador and now Brazil from criminal
    extortion. This has all gone too far...worldwide.
    5 Apr, 10:38 AM Reply Like
  • Oil Buddy
    , contributor
    Comments (3) | Send Message
     
    Why is this and the one reuters article the only thing in the news about this turn of events. Nothing on chevron.com. I'm not sure that I believe what you are saying.
    18 Apr, 01:34 PM Reply Like
  • BAHAMAS1
    , contributor
    Comments (1791) | Send Message
     
    hallereugene-
    On further reading thought you were retired from the health care field and living in Europe.

     

    Now you're ceo of a car company ?- in Europe ?

     

    Just wondering.
    20 Apr, 01:10 PM Reply Like
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