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Sedco 706: ANP decision on Chevron Frade field






"The elements evaluated and described by the National Agency of Oil, Gas and Biofuels (ANP), in its report show in detail that the accident could have been avoided if Chevron had conducted its operations in full compliance with regulations, in accordance with good practice in the oil industry and with its own procedures manual. ...Thus, there is no doubt that if Chevron had properly managed the uncertainties of geology, the risk analysis had been performed in accordance with the rules and respected the basic assumptions of safety, the accident could have been avoided."


[November 25, 2011]
Chevron's drilling rights have been suspended by Brazil's National Petroleum Agency after on evidence that the company had been "negligent" in its study of data needed to drill and in contingency planning for abandoning the well in the event of accident.


The agency, known as ANP, rejected a request from Chevron made before the leak to drill wells in the deeper subsalt areas in the Frade field where the spill occurred. The field is located in the oil-rich Campos Basin and is the only block in Brazil where Chevron produces oil as the operator. The only rig working for Chevron off Brazil is Transocean Ltd's Sedco 706, which drilled the well that leaked.


The Campos Basin is currently the source of more than 80 percent of Brazil's oil output.


While Chevron said lon November 23 it had not received formal notice of the drilling halt, the company announced an indefinite voluntary suspension of all current and future drilling off Brazil, apart from plug and abandonment work.


"Chevron acknowledges, however, that ANP has posted a notice of suspension to its website," the company added. more back

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