Chevron Oil Spill May Not Be Controlled

Late last week, it appeared that an oil spill had taken place in Brazil (NYSE:EWZ) at the Chevron-operated Frade field in the country’s most productive area of offshore production, the Campos Basin.

It’s been an interesting few days of how the spill occurred as Chevron Corporation (NYSE:CVX) has changed its story a few times. The company initially said the oil slick had been caused by a natural oil seep on the seafloor; it responded by suspending drilling on a well in the Frade field.

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Brazilian authorities disagreed with the cause. On Monday, Chevron backtracked a bit and said an appraisal well drilled at the U.S. company’s Frade field may have contributed to the oil spill; the Brazilian government had already suspected this in early reviews. And today in a news release from Brazilian authorities, it announced that Chevron is now trying to stop the well from leaking, which is currently losing about 84,00 to 13,860 gallons (200 to 330 barrels) per day.

According to a Reuters article after the release, Chevron (NYSE:CVX) said the oil flow appears to have stopped, which may be seen as an initial sign of progress to contain the spill.

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