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23 December 2011
Rio state's prosecutors are threatening to indict executives of Chevron and Transocean after a recent 3,000 bbl oil leak in its offshore Frade field.
They also seek to shut all operations and levy fines of $10.8bn.
“Depending on the measures that the government may take, it would make oil exploration in Brasil much more expensive,” said a Rio expert.
Oil execs call Rio's actions...an 'overreaction.'
“I’m a little surprised by the stance that you’re seeing in Brasil, largely because it’s so excessive, potentially, that you could put a very big chill on foreign investment in the deep water,” said a USA fund manager.
"Unlike the BP incident in the Gulf, this year’s Brasilian and Chinese spills are within the normal range of oil industry accidents,' claims a geologist.