Brazilian prosecutors to prosecute Chevron officials over new oil spill

Brazilian prosecutors say they will press criminal charges against the executives of the US oil giant Chevron and its Switzerland-based offshore drilling company Transocean on charges of environmental crimes.

The charges against George Buck, the head of Chevron’s Brazil unit, and 16 other executives are expected to be filed in a federal court in Rio de Janeiro on Tuesday or Wednesday, the prosecutors’ press office announced on Saturday.

The Brazilian court has barred the 17 executives from leaving Brazil and ordered them to hand over their passports to the police authorities within 24 hours.

The news came a day after the Brazilian navy spotted a thick oil spill spreading about one kilometer over the area off Brazil’s Atlantic coast near the offshore field, Frade, which was the site of another major crude spill in November 2011.

Chevron announced on Saturday that it stopped production at the field, upon permission by the Brazilian oil industry regulator, Agência Nacional do Petroleo (ANP).

The oil giant, however, says there is no evidence to indicate that the new leak is related to the one in November.

Chevron’s spill in November, which gushed about 3,000 barrels of crude into the sea, led to a USD11-billion civil lawsuit, making it the largest case on environmental damages in Brazil’s history.

Observers say Chevron’s troubles in Brazil, including a shortage of trained workers, engineers and equipment, is expected to force the company to reconsider its strategies in Latin America.