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Chevron, Transocean appeal Brazilian court ruling

A Brazilian court has ruled energy majors Chevron Corp and Transocean Ltd must suspend their operations in Brazil, the judicial body announced on Tuesday. The decision follows an oil spill in a Chevron-operated well in November last year.
Brazil’s Tribunal Regional Federal da 2a região (TRF2) issued an injunction against Chevron Corp and Transocean Ltd for both firms to suspend their oil and gas operations in the country. The companies have 30 days to comply and halt activities or face daily fines of USD 250m.
The firms face charges for indirectly causing environmental damage after a 3,700 barrels oil spill at the Chevron-operated Frade offshore oil field, northern Campos Basin. The Brazilian court highlighted “badly executed drilling operations” in an official statement; both companies have denied any wrongdoing.
“Transocean rigs continue to operate in Brazil,” the company said in a statement. “We maintain that this case is without merit.”
Chevron has announced that it will appeal the court’s ruling.
“We are confident that at all times during the Frade incident we acted appropriately and responsibly, consistent with the industry best practices, and within the Plan of Development approved by ANP,” a Chevron spokesperson told OGT last week.
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