Petróleo problems

Ecuador, Brazil and Chevron take legal action against each other

Although Chevron maintains that it acted in “diligent and appropriate way”, the Agencia Nacional do Petroleo, Brazil’s oil industry watchdog, has indicted the company three times over an oil leak in November. Across the other side of the continent, Ecuadorean judges have upheld damage claims against Chevron totalling $18bn over alleged pollution in the Amazon jungle.

In Ecuador, the oil firm has been accused of spilling toxic waste in precious areas of the rainforest and having a detrimental effect on the health of the local population due to its operations. It has admitted that its subsidiary Texaco “fully remediated its share of environmental impacts arising from oil production operations prior to 1992”. In this instance the ‘remediation’ that took place was to set alight any mess they had created.

The case has been from court to court but Chevron maintains its innocence from the very expensive legal wrangling building up against it:

“Chevron is defending itself against false allegations that it is responsible for alleged environmental and social harms in the Amazon region of Ecuador”

The company has accused the Ecuadorean legal teams of exercising undue pressure on the justice system in order to achieve the favourable judgment. But the Pacific nation’s government is also in the dock as the US company has brought a claim against Quito of international law violations relating to the pollution case. And a tribunal in The Hague has ordered Ecuador to suspend enforcement of any judgment against Chevron until it resolves the claims the company has made.

In Brazil, Chevron has taken full responsibility for an oil leak in November in the Frade field. The company blamed the spill on higher pressure than expected in the oil reservoir. However, it was at pains to highlight that further damage was avoided due to a seabed valve encapsulating some reserves.

But owning up to the spill has not exonerated Chevron. The Agencia Nacional do Petroleo said it would fine the company (as yet an unspecified amount) because they did not take sufficient protective and preventive measures during the drilling. In addition, federal police have brought a criminal case against Chevron for alleged environmental crimes.

So both Quito and Brasilia, whilst opening up their natural resources to foreign paws, have come down hard after apparent crimes against Nature. The biodiversity and outstanding natural beauty that both countries enjoy must be celebrated and protected. Nevertheless, the two governments realise that outside investment in their black gold is a policy that must be continued.

But, as we saw with BP in the Gulf of Mexico, the fervour for oil and the subsequent accidents seem to know no bounds. The oil companies must work more carefully. But no matter how hard Chevron is battered legally by Quito and Brasilia, the welcoming governments must play more of a role from the start with the drillers and not just intervene with the lawyers’ fees when there is an unfortunate spill at the end.

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