US’ Chevron suspends drilling operations offshore Brazil, indefinitely

24 November 2011 05:52  [Source: ICIS news]

SINGAPORE (ICIS)--US energy firm Chevron said on Thursday it has voluntarily suspended its drilling operations offshore Brazil, indefinitely, following an oil spill at the Frade field this month.

It said that its subsidiary, Chevron Brasil Upstream Frade Ltda has not received formal norice from Brazil’s National Petroleum Agency on the suspension of its drilling license.

NPC posted the suspension of Chevron’s drilling license on its own website.

Chevron said that its current production in the Frade field, estimated at about 79,000 barrels of oil equivalent per day, or on other Frade field operations, will not be affected.

“The voluntary suspension includes the company's permitted pre-salt wells in the Frade field with the exception of current plug and abandonment activities. The suspension is indefinite,” Chevron said.

Chevron said it had previously suspended development drilling in the Frade field on November 9 after it became aware of oil migrating from seep lines in the ocean floor.

“The volume of oil currently contained in the sheen on the ocean's surface has been further reduced to about one barrel through cleaning and dispersion methods approved by Brazilian authorities. Chevron was successful in stopping the primary source of the oil sheen 10 days ago,” the company said.

By: Pearl Bantillo
+65 6780 4359

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