12 November 2011

BRASIL: 17 Nov UPDATE: Police Begin Probe As Chevron Plugs Frade Well After Spill...Off Rio's Coast; China Buys 30% Of GALP's Offshore Oil Assets For $5.2bn.

                                             LINK CHANGE: CNN

     Are Rio's world famous beaches in danger from an oil spill?
     Not yet...from the most recent spill off its coast.
     Because...Chevron has plugged a new exploration well off Rio's coast in the Frade field.
     Chevron had claimed the amount of oil released was only between 400-650 bbls daily.
     Initially...it reported 10 times LESS oil was released.
     Federal police have begun an investigation of the leak...saying that Chevron's claims don't match the reality of the spill...and claiming as much as 900 bbls daily were released.
     Killing the new well may cost Chevron hundreds of millions.
     The Frade field began production in 2009 and averages 80,000 bbls daily.
     The well is located 230 miles/370 km northeast of Rio De Janeiro in 3,800 feet/1,200 meters of water...in the much hyped pre-Salt fields. 

    AND: China refiner Sinopec agreed to buy 30% of GALP's Brasil offshore oil reserves for $5.2bn...its 2nd big investment in the pre-Salt fields there in 2 years.