Chevron

Chevron suspended in Brazil over oil spill

Brazil has temporarily banned Chevron from drilling in the country after it caused an oil spill off the coast of Rio de Janeiro, raising doubts about the company’s role in one of the industry’s biggest investment programmes.

Late on Wednesday, Brazil’s National Petroleum Agency (ANP) accused the U.S. company of negligence late on Wednesday, announcing it would suspend all of Chevron’s drilling until it clarified the reasons for a spill that released almost 3,000 barrels of oil into the sea earlier this month.

Analysts believe that the Brazilian government is keen to make an example of Chevron as a warning to other foreign companies looking to take a share of Brazil’s pre-salt reserves, which are estimated to contain as much as 50bn barrels of oil.