Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Brazil Court Orders Chevron, Transocean to Halt

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

A Brazilian court has given oil giant Chevron (NYSE: CVX  ) and Transocean (NYSE: RIG  ) , the world's largest offshore driller, 30 days to halt operations in the country.

Following last November's 3,700-barrel oil leak at Chevron's Frade field off the coast of Brazil, a Brazilian court recently served an injunction on the companies, giving them 30 days to suspend all operations in the nation until ongoing court cases are resolved, according to published reports. Transocean said in a statement that it is "vigorously pursuing the overturn or suspension of the preliminary injunction, including through an appeal to the Superior Court of Justice."

Chevron additionally said this week that it paid a $17.3 million fine over the Frade incident; a 30% discount is expected to apply as Chevron did not contest the fine and paid on time.

Both Chevron and Transocean face civil lawsuits seeking billions in damages, even though no oil from the Transocean-operated Frade reached Brazilian shores. Criminal charges are also pending.

Transocean could be hit hardest by the injunction, if it is not lifted. In the first half of 2012, 11% of the company's consolidated operating revenues came from Brazil, where it has 10 rigs under contract. Eight of those rigs work for state-run Petrobras. Petrobras partners with Chevron at the Frade field and has supported both companies through this process. Chevron halted Frade operations in March.

Shares of both Chevron and Transocean fell on Friday in midday trading, with the former's stock down half a percent and shares of the latter falling 1%.

Fool contributor Dan Carroll holds no positions in the stocks mentioned in this article. The Motley Fool owns shares of Transocean. Motley Fool newsletter services have recommended buying shares of Chevron and Petrobras. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2036198, ~/Articles/ArticleHandler.aspx, 10/27/2016 7:43:36 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 10 hours ago Sponsored by:
DOW 18,199.33 30.06 0.17%
S&P 500 2,139.43 -3.73 -0.17%
NASD 5,250.27 -33.13 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/26/2016 4:00 PM
CVX $101.19 Up +0.42 +0.42%
Chevron CAPS Rating: ****
RIG $10.32 Up +0.29 +2.89%
Transocean CAPS Rating: ****