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Petrobras to be fined for spill.

Brazil's environmental protection agency plans to fine oil giant Petrobras for a southern Brazilian oil spill this week that fouled a beach, the agency said. Petrobras said it has cleaned up the 317 gallons (1.2 cubic metres) of oil that washed ashore from a leaking buoy onto Tramandai beach in Rio Grande do Sul, in Brazil's far south.

Transpetro, the shipping unit of Brazil's state-run oil firm and the buoy's operator, is investigating what caused the spill.

The oil leaked about 6 kilometres (4 miles) offshore, but was swept ashore by ocean currents, Ibama's regional superintendent Joao Moreira Junior told Reuters.

After Ibama assesses environmental damages, it will apply a fine that could range from $50,000 reais ($28,000) to a maximum of 50 million reais ($28 million), Moreira Junior said.

Transpetro's buoy connects oil tankers to a pipeline at its coastal Osorio terminal, which supplies a Petrobras refinery in Canoas, Brazil.

Spill containment crews remain on site, although Petrobras said the leak is contained and there is no sign of more oil in the water. Separately, Brazilian steelmaker CSN said it spilled oil into the Paraiba do Sul River in Rio de Janeiro State, near its Presidente Vargas steel mill.

A company spokesman estimated the spill at around 50 cubic metres (13,209 gallons) of oil, but said the quantity isn't certain yet.

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Publication:Oil & Gas News
Geographic Code:3BRAZ
Date:Feb 6, 2012
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