Government Suspends Chevron's Offshore Brazil Operations

The Board of the National Agency of Petroleum, Natural Gas and Biofuels (ANP), which met Thursday, ordered the suspension of drilling activities in the Frade Field until the causes are identified and those responsible for the oil spill restore the conditions and security of the area. This resolution suspends all drilling for Chevron in Brazil Ltda. in the country.

The ANP rejected, the same decision, the request of the licensee to drill new well in the Frade Field in order to achieve the pre-salt. The Board understands that the drilling of the pre-salt reservoirs poses risks of a nature similar to that occurring in the well the leak originated, compounded by the larger and deeper.

The measure does not reach the necessary activities to the final abandonment of the well 9-RJS-FR-50DP and the restoration of their safety.

The decision was based on technical analysis and observations of the Agency, which show negligence on the part of the concessionaire in the investigation of fundamental data for the drilling of wells and the design and implementation schedule of abandonment, and lack of greater attention to best practices industry.

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