Brazil Oil Spill Reaches Rio Beach, Official Says

(AP Photo/Ibama)

(AP Photo/Ibama)  (AP2011)

As Brazil continues it's cleanup from the effects of the Chevron Corp. oil leak last month, officials say some of the 2,600 gallons (10,000 liters) of oil that leaked from a Japanese-operated rig last week has reached a beach near Rio de Janeiro.

Rio state's environmental secretary says part of the spill hit Bonfim beach on Sunday, two days after the oil leaked from the ship-shaped rig operated by the

Modec, a Tokyo-based provider of floating production systems working for Brazil's Petroleo Brasileiro SA.

Carlos Minc was quoted by the O Globo website saying the company was fined in $5.4 million on Saturday.

Rio state's environmental institute said in a statement the spill is under control.

Chevron Corp. was fined about $28 million for the much bigger oil leak off Rio last month.
Brazil lawsuit against Chevron may scare investors

A business analyst says the nearly $11 billion lawsuit filed by Brazilian prosecutors against San Ramon, Calif.-based Chevron Corp. because of an offshore oil leak could scare away foreign capital needed to develop Brazil's huge offshore oil deposits.

Robert Kessler is head of Pickering, Holt & Co.'s global integrated oil research department. He says the $10.6 billion fine federal prosecutors are seeking is more than 700 percent of Chevron's $1.5 billion net capital investment in Brazil.

He says Friday that such a fine "would be a poor risk-reward ratio for all companies looking to invest in the business."

The leak that occurred in November spilled nearly 3,000 barrels of oil into the Atlantic Ocean.

Based on reporting by the Associated Press and EFE.

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