Chevron to restart production at Frade; spill found to be bigger than previously thought

The Brazilian National Oil Agency (ANP) said that it had no objections to Chevron submitting its proposal to resume drilling at the Frade oilfield, which was the site of an oil spill in November 2011.

According to Magda Chambriard, the head of Brazil’s ANP, a soon-to-be-released report into the spill will reveal that “the accident could have been avoided if Chevron had conducted its operations while fully adhering to the regulations of the ANP and industrywide best practices, as well as its own procedure manual.” The most recent estimate for the size of the spill is some 3700 bbls, up from the ANP’s previous estimate of 3000 bbls and a significant premium on Chevron’s estimate on 2400 bbls.

A statement from Chevron said, “We disagree with the report’s characterization of our safety culture … We are confident that at all times during the Frade incident we acted appropriately and responsibly.”

Chevron is to be fined somewhere in the region of US$ 25 million for the spill, although the precise amount has yet to be determined. Chambriard noted that she was unhappy with the fact that the fines were capped under Brazilian law. The ANP has entered discussions with the Mines and Energy Ministry in order to reform the system of fines.

Chevron is to submit it’s request to resume drilling on 27^th July and the ANP has voiced no objection.

Edited from various sources by David Bizley

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/20072012/chevron_to_restart_production_at_frade_spill_found_to_be_bigger_than_previously_thought/