Brazil’s Petrobras admits second oil spill in less than a week
Brazil's state-run energy giant Petrobras on Tuesday reported that 160 barrels of crude oil may have spilled from a deep-water well off Sao Paulo state but said the situation was under control.
A company statement said a production string rupture of the FPWSO Dynamic Producer (vessel platform) was detected early Tuesday, roughly 300 kilometres off the coast of Sao Paulo state, where water depth reaches 2,140 meters.
It said the well was automatically shut down after the rupture by the safety system and has been secured. “A preliminary estimate indicates that 160 barrels of oil may have spilled. There is no possibility of the oil reaching the Brazilian coast,” Petrobras said.
It added that an investigation was launched to determine the cause of the leak.
Petrobras said it notified the Brazilian Navy, the Brazilian Institute of Environment and Renewable Natural Resources (IBAMA) and the Brazilian National Petroleum Agency (ANP). It was the second oil spill in Brazil in less than a week.
Last Thursday, Transpetro, a Petrobras subsidiary, said it had detected a spill off the coast of Rio Grande do Sul state but did not know how much had spilled.
Petrobras transportation unit said it was not possible to estimate how much oil had leaked but said personnel and equipment were deployed to contain and remove the spill off the coast of the southern state.
In November, another oil spill was detected in a well operated by US energy company Chevron near the Frade field, 370 kilometres northeast of the Rio de Janeiro coast. The spill was eventually contained and Chevron was subject to several environmental fines.
The case was a wake-up call for Brazil as it prepares to tap huge underwater oil fields which ANP says hold reserves that could surpass 100 billion barrels of high-quality recoverable crude. These fields are off Brazil's southeast Atlantic coast beneath kilometres of ocean, bedrock, and hot salt-beds.
In 2010, Petrobras was the world's third biggest oil producer in terms of market value at 228 billion dollars. By late last month it had fallen to 5th place, with its value down to 156 billion, according to the daily newspaper O Globo.
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11 comments Feed
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Wot, not happening? Or does it only happen when the oil company is 'American' or 'foreign'?
I have been through this on the previous leak blog with a Brasilian who claims not, and then stated that Petrobras was fined 100M reals some time ago.
As I said to him, a spill is a spill. They happen to all companies / oprators, as do fires and other catastrophes. To him, Chevron was synonomous with the devil. Those of us who have worked in the industry know they are all the same and it is just a roll of the dice as to who is next. Even the best operators are not immune.
this must have been my young friend Forgetit.
He is one of the good guys even though we frequently approach issues from opposite ends.
I guess the problem is with fining a nationalised company, that the money just goes from one government department to another, with the usual 10% for 'goodwill'. Then the R$100m have to be replaced out of Contingency, with Contingency being topped up from taxes in the next budget round. No pressure to learn = no learn.
32 ChrisR (#)
Dec 28th, 2011 - 03:07 pm
As I said, my only knowledge of Brasil is web-based. Thank you for you insight, I appreciate that.
Wot, not happening? Or does it only happen when the oil company is 'American' or 'foreign'?
Old kool-aid drinker Geoff, you know well that Chevron (100% private) was fined not because it's a US oil company. Actually Brazil acted like the US that fined BP, but tougher. If you do your homework Geoff, you would read that Petrobras ( A state company that acts private) did not lie/lied about the leak and if Petrobras would be fined, it would not be the first time.
The problem of Geoff is, as usual, his idiotic neo-liberal mindset holds him back.
Almost correct Fido:
'If you do your homework Geoff, you would read that Petrobras ( A state company that acts private)' If I remember correctly from the recent appointment of the first woman to control a petro-chemical business this big Dillma was able to 'appoint her' because Brasil owns 48.6% of Petrobras.
And why the 'From Genius web based info warrior ChrisR: comment? What point are you attempting to make?
The only time I am in Brasil is when I change flights at San Paolo on my way south or back to the UK. So if I were to claim or imply practical knowledge of Brasil I would be lying - this I never do unlike certain LatAm bloggers.
Why are you so negative?
my typing finger put a 0 on the US$10 BILLION that federal prosecutors are claiming.
This is a civil case as there are limits to compensations to 'criminal' actions. This limit has been already massively exceeded by the Brasilian authorities.
Claims can be as high as the government, state or any other individual think they can get away with; the bigger the corporation the more ambitious the filing of the claim.
The Ecuadorian government are doing the same thing over an ancient claim without accepting their own culpability; all it needs to succeed is a corrupt judge, and this - apparently - they had.
Note:
Brazilian environmental authorities ordered Chevron to pay 50 million reais ($28 million), the ANP also for another 50 million reais, and the Rio de Janeiro state government for 100 million reais. On top of this Brazilian federal prosecutors are seeking 20 billion reais (some $10.7 billion) in damages from U.S. oil supermajor Chevron and Swiss-based Transocean for the November oil spill.
If I were CEO of Chevron I would be thinking whether to stay in Brasil or up stumps and go elsewhere if only for the liklyhood that another spill, however caused or the size of it would result in an even bigger fine.
What is it with the Brasilians, do they spend all the fines they impose restituting the site(s) or does it go to general coffers?
I realise the size of the Brasilian basin find is very large but Shell pulled out of Q'Ebo Terminal, NW Delta 1, Nigeria, because of the troubles with the muslim infiltrators. I got my job with Seaweld Engineering on that site because my predessor was shot to death in the 'safe-house', the one I had to stay in! Interestingly it was Chevron who took it over.
Another lifetime.
The 'Chevron' Frade seepage
Chevron Brasil Upstream Frade Ltda., a Chevron Corp. subsidiary, is the lead operator in the Frade field where the seepage occured, with a 51.7 percent stake.
Petrobras has a 30 percent interest in the project and the Frade Japao Petroleo Ltda. consortium controls the remaining stake.
No court action has been brought against the nationalised Petrobras or the Japanese consorium, even though there is joint liability.
”What is it with the Brasilians, do they spend all the fines they impose restituting the site(s) or does it go to general coffers?” Chris #9
The only use of the US$11 billion so far declared is a statement by Carlos Minc that he will build a park in Rio by the sea.
Thanks for that Geoff. The park wouldn't be near to where this Minc character lives by any chance? :o)
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