Chevron Faces $11 Billion Lawsuit for Oil Spill in Brazil
Chevron is facing another lawsuit from a Brazilian federal prosecutor, Eduardo Santos, for an oil spill at the Frade project off of Brazil’s coast. The lawsuit was filed against both Chevron, the U.S. oil company, and Transocean, the drilling company, because last month, Chevron noticed that there were leaks at the Frade project. Although Chevron stopped drilling as a precautionary measure once it noticed the leak, it is facing an $11 billion lawsuit for the environmental damages caused from these leaks.
This lawsuit is the second $11 billion suit filed within the last six months against Chevron’s Frade project. The first suit addressed a 3,000-barrel oil spill in November of last year. A drilling accident caused oil to leak from the well into fissures on the Brazilian seabed. Some critics argue that the most recent lawsuit is overzealous because the leak consists of two barrels, only one of which escaped. Also, critics assert that unlike the BP spill in the Gulf of Mexico, no oil reached the Brazilian shoreline.
Santos only intensified the debate when he filed criminal charges against Chevron and Transocean last month seeking penalties estimated to be about 31 years in prison. His current civil suit also seeks to prevent Chevron and Transocean from drilling in Brazil, transferring Brazilian profits to locations overseas, and obtaining financing from the government. Chevron has not yet commented on the pending civil and criminal lawsuits.
For more information about mass tort litigation, please visit our website today.


