Chevron says criminal charges "without merit"

US oil major Chevron (NYSE: CVX) says that criminal charges being considered by Brazilian police against its employees in relation to a November oil spill in the offshore Campos basin are unfounded. "The federal police have recommended indictments against our employees, which we believe are without merit. We will vigorously defend the company and its employees. Chevron is confident that once all the facts are fully examined, they will demonstrate that Chevron responded appropriately and responsibly to the incident," a Chevron spokesperson told BNamericas in an emailed statement. News emerged from Brazil on Wednesday that federal police have recommended that criminal charges be pursued against high ranking officials at both Chevron and drilling contractor Transocean (NYSE: RIG) in relation to the Frade spill, in which around 2,400b of crude was leaked. The charges being considered by authorities include environmental crimes and withholding information in an investigation, local media report. This is the latest sanction faced by the companies in the aftermath of the spill. Last week federal prosecutors announced plans to sue both companies up to US$11bn for environmental and social damages. Chevron has already been stripped of its drilling rights by Brazil's ANP hydrocarbons regulator and fined US$27mn by local authorities over the spill. Press reports suggest that regulators could also impose an injunction halting operations in the country on top of the financial penalties. Frade is Chevron's first operating oil field in Brazil and is in roughly 3,700ft (1,128m) of water, 370km northeast of Rio de Janeiro. The field contains an estimated 200M-300Mb of recoverable oil and produced its first crude in the second quarter of 2009. Production at the Frade field is back online and operating at normal levels of 79,000b/d. Chevron operates Frade with a 51.75% stake, while Brazilian state-run energy major Petrobras (NYSE: PBR) holds 30% and Frade Japão the balance.