Chevron (CVX), Transocean (RIG) Face Second 'Outrageous' Suit in Frade Leak
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Chevron (NYSE: CVX) and Transocean (NYSE: RIG) shares are lower Wednesday morning following reports the duo is facing a second suit in Brazil.
Stemming from an early March oil leak found offshore Brazil at its Frade field, the Federal Public Prosecutors office filed a 20 billion real (about $10.9 billion) civil suit in the federal court of Campos.
Claims by prosecutors have Chevron and Transocean's efforts "permanently damaging" the Frade field, denying Brazil's claims to royalties on the asset.
According to Reuters, the initial leak last year produced a spill of about 3,000 barrels, about 0.1 percent of what happened at the 2010 Macondo play in the Gulf of Mexico. The latest spill is claimed to have leaked two barrels.
Overall, Chevron is said to face about $22 billion in legal charges from the two incidents. In comparison, BP plc (NYSE: BP) recently agreed to pay $7.8 billion in charges from the 2010 incident.
Stemming from an early March oil leak found offshore Brazil at its Frade field, the Federal Public Prosecutors office filed a 20 billion real (about $10.9 billion) civil suit in the federal court of Campos.
Claims by prosecutors have Chevron and Transocean's efforts "permanently damaging" the Frade field, denying Brazil's claims to royalties on the asset.
According to Reuters, the initial leak last year produced a spill of about 3,000 barrels, about 0.1 percent of what happened at the 2010 Macondo play in the Gulf of Mexico. The latest spill is claimed to have leaked two barrels.
Overall, Chevron is said to face about $22 billion in legal charges from the two incidents. In comparison, BP plc (NYSE: BP) recently agreed to pay $7.8 billion in charges from the 2010 incident.
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