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Chevron′s Brazil Unit Says Regulator ANP Shut in One Production Well

02.12.2011  |  Business Wire

The Company Says It Will Address All ANP Concerns at Campo Frade


Chevron Brasil Upstream Frade Ltda announced today it has been ordered
by Brazil′s National Petroleum Agency (ANP) to shut in one of its 11
production wells and four produced water injection wells at its
off-shore Frade joint-venture Floating Production-Storage and Offloading
(FPSO) facility.


The move by the ANP follows the agency′s Nov. 23 to 25 safety audit of
the Frade FPSO, the company said. The production well cited by the ANP
accounts for less than 10 percent of Frade′s total production of about
79,000 barrels per day.


Chevron respects the decisions of the ANP and will respond appropriately
to the agency′s requests for clarification. All Frade production and
injection wells are safe and secure. Chevron continues to fully inform
and work with Brazilian government agencies to address their specific
issues on our activities in Brazil.


With regard to the reported existence of hydrogen sulfide gas as the
basis for requesting the well be shut in, Chevron clarifies that it
conducts regular monitoring of the substance, a natural byproduct of the
oil and gas production process, and the company has safety systems and
processes in place to ensure the safety of employees, contractors and
the operations at all times.


Chevron is confident it will successfully respond to the ANP′s concerns
and be able to resume operation of its production and injection wells in
due time.


Chevron is one of the world′s leading integrated energy companies, with
subsidiaries that conduct business worldwide. The company is involved in
virtually every facet of the energy industry. Chevron explores for,
produces and transports crude oil and natural gas; refines, markets and
distributes transportation fuels and lubricants; manufactures and sells
petrochemical products; generates power and produces geothermal energy;
provides energy efficiency solutions; and develops the energy resources
of the future, including biofuels. Chevron is based in San Ramon, Calif.
More information about Chevron is available at www.chevron.com.


Chevron

Kurt Glaubitz, +1-925-790-6928



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