Brazil's ANP Says Chevron Oil Spill Fine Unlikely to Surpass $25 Million
07/16/2012| 03:29pm US/Eastern
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(Adds comment from Chevron in fifth paragraph.)
Brazil's National Petroleum Agency, or ANP, is unlikely to fine U.S. oil major Chevron Corp. (>> Chevron Corporation) more than 50 million Brazilian reais ($24.6 million) for its role in a November oil spill off Brazil's coast, ANP Director Magda Chambriard said Monday.
The ANP is expected to release its report on the incident, in which a drilling accident caused between 2,400 and 3,000 barrels of oil to leak into the Atlantic Ocean from cracks in the seabed, later this week.
Speaking on the sidelines of an event in Rio de Janeiro, Ms. Chambriard told reporters that Chevron would be fined for more than 20 infractions related to the spill. The ANP's press office confirmed Ms. Chambriard's comments, with a spokesman adding that a total of 25 separate infractions were discovered during the regulator's investigation.
Chevron and drill rig operator Transocean Ltd. (>> Transocean LTD) are facing civil and criminal lawsuits for their roles in the incident at the Chevron-operated Frade offshore oil field.
In an emailed statement, Chevron said that its response to the incident "was implemented according to the law, industry standards and in a timely manner."
Meanwhile, Transocean spokesman Guy Cantwell said that "we believe that it will be clearly demonstrated that the company acted responsibly and quickly, following the highest industry standards."
Write to Jeff Fick at jeff.fick@dowjones.com
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