Brazil’s ANP Oil Agency OKs Containment Plan For Chevron Well

Brazil is anther country struggling with an oil spill and the cleanup involved.

Brazil is anther country struggling with an oil spill and the cleanup involved.

Originally published on NASDAQ.com

By Gerald Jeffris, Of DOW JONES NEWSWIRES

BRASILIA -(Dow Jones)- An emergency plan to contain an offshore oil leak at a well operated by the Brazilian unit of U.S. oil company Chevron Corp. (CVX) was approved late Sunday by Brazil’sNational Petroleum Agency, the agency said Monday.

The Brazilian oil regulator, known as ANP, said Chevron had begun an abandonment operation that would involve injecting mud into the well and capping it with cement. The ANP said it expected the leak would be controlled in the ” coming days.”

“Chevron put its emergency plan into effect and is entirely responsible for the containment of the leak,” ANP said.

The well is located at a depth of 1184 meters in the Frade field of Brazil’s offshore Campos Basin. Frade is located about 230 miles northeast of Rio de Janeiro.

ANP said Chevron estimated that the well was leaking at a rate of between 200 and 330 barrels per day, and that between 521 and 882 barrels had reached the surface so far. The leak, first discovered Nov. 8, has produced a stain on the water stretching across an area of 163 square kilometers, the agency said.

The company has dispatched eight ships to the area to help with cleanup, and another 10 ships have been sent from other companies, including Petroleo Brasileiro SA (PETR4.BR, PBR), Statoil ASA (STL.OS, STO), BP PLC (BP, BP.LN), Repsol YPF (REP.MC, REPYY) and Royal Dutch Shell PLC (RDSA.LN, RDSA, RDSB.LN, RDSB).

Separately, Chevron confirmed its plans to cap and abandon the well…

Continue reading article, here.



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