Chevron Will Soar Higher On New Technology, Deals
Chevron (CVX), the fifth-largest integrated oil company in the world and the second-largest in the U.S., scored a victory recently after a judge denied an injunction seeking to bar the company from operating in Brazil after two offshore oil leaks, including a November spill of roughly 3,000 barrels northeast of Rio de Janeiro. The judge ruled that granting the injunction would be a judicial intrusion into the public administration as Brazil’s oil industry is regulated by the ANP. The lawsuit, which also names Transocean (RIG), was brought by federal prosecutor Eduardo Santos de Oliveira. He is also in the process of filing two $11 billion (20 billion real) civil lawsuits against the companies, as well as a variety of criminal charges against 17 Chevron and Transocean employees. The criminal charges carry sentences of up to 31 years.
Chevron’s issues in Brazil do not seem to be hurting the company overall. Chevron recently released a bullish first-quarter 2012 interim update. It is expecting its first-quarter earnings to be higher than the previous quarter, driven largely by its exploration and production arm, crude oil prices and lower operating expenses. Chevron’s quarterly results will be released April 27, 2012.
The company has also been able to secure a variety of profitable agreements. On April 17, the company announced a preliminary agreement with Japan’s Chubu Electric Power Co. to supply the latter with 1 million tonnes per year of liquid natural gas (LNG) over the next 20 years.Â To continue reading, click here.