Chevron (CVX) respondedafter the market closed to Brazilian prosecutor Eduardo Santos de Oliveira, who told reporters that he plans to file a lawsuit against the oil giant and Transocean (RIG) seeking $10.7 billion in damages.
After an oil spill in early November off the coast of Rio de Janeiro the companies “weren’t able to control the damage caused by the spill of nearly 3,000 barrels of oil, which shows a lack of planning and environmental management by the companies,” the statement from the prosecutor’s office charged.
Santos de Oliveira also wants to stop the two companies from operating in Brazil.
Chevron saidthat the company hasn’t received any formal notice of the suit.
“From the outset, Chevron responded responsibly to the incident at its Frade Field and has dealt transparently with all Brazilian authorities.�The flow of oil from the source was stopped within four days and the company continues to make significant progress in containing any residual oil.�Chevron has also continued to address the surface sheen, which is now less than a single barrel.�There have been no coastal or wildlife impacts.”
Chevron shares rose 1.6% after the market closed. Transocean does not appear to have responded to the prosecutors statements yet.
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