Chevron Reveals it Leaked 2,400 Barrels of Oil off Brazilian Coast

  on

Chevron Corporation, which is facing roughly $28 million in fines from the Brazilian government because of an oil leak the company caused on the ocean floor, has calculated the total amount of oil leaked in the South Atlantic at 2,400 barrels.

The company's calculation comes close to official estimates by Brazilian officials on Friday, which placed the leak at 2,600 barrels. Earlier last week the company said 650 barrels of oil leaked from the fissure on the ocean floor.

Chevron on Monday accepted full responsibility for the leak caused by its subsidiary in the region where it drilled an appraisal well. A sudden spike in pressure, or kick, caused the rock to crack allowing the oil underneath to escape, as seen in a company surveillance video.

Brazilian officials announced late Monday their intention to fine the company for environmental damages. So far, Chevron faces one $28 million fine, but could face additional similarly priced citations from Brazil's petroleum authority as well as from Rio State's local government. 

Brazilian officials may also change the company's operating status to prevent it from conducting deep sea operations in the future.

Chevron will evaluate and respond appropriately to any and all assessment notices from Brazilian government authorities. Chevron respects and complies with the laws of the countries in which it operates, announced the company in their latest statement released late Tuesday.

According to a company timeline of the leak, Chevron experienced the kick on Monday Nov. 7, and reported the incident to Brazil's oil authority and environment ministry. The following evening, Brazilian oil giant Petroleo Brasileiro alerted Chevron that oil was floating on the ocean surface. On Wednesday, Nov. 9, the company reported the oil seep to Brazilian officials.

Four days later, Chevron killed the well by plugging it with heavy mud.

According to a company diagram of the drilling operation, the kick took place roughly 10,900 feet into the ocean floor at a depth of roughly 4,000 feet from the ocean surface.

Join the Discussion