CHEVRON OFFICIALS BANNED FROM LEAVING BRAZIL

Fool me once, shame on you. Fool me twice, shame on me.

 

Ecuador and Brazil are two South American countries. Both are oil producers. Both have had problems with Chevron.

 

Texaco polluted the Amazon in 1992. Sixteen billion gallons of polluted waste water found its way into the river and it's tributaries. From there, it creeped in land and contaminated Ecuador's rain forest.

 

Texaco sold its Ecuador business to Chevron in 2001.

 

In these environmental matters, it is not uncommon for one oil company to be bought out by another. This does not bar recovery by the entity harmed. Chevron in its agreement with Texaco would have agreed to assume all of Texaco's liabilities.

 

Chevron negotiated the waste water pollution problem with Ecuadorians for two years. Negotiations were proving fruitless. First the Ecuadorians had been jerked around for many years by Texaco in their negotiations. Now Chevron was playing the same game. Chevron claimed that Texaco had completed the cleanup and fulfilled its responsibilities prior to Chevron purchasing Texaco.

 

Ecuadorians threatened to sue Chevron. Chevron closed down all its Ecuadorian operations, laid all employees off, sold all their properties, closed all bank accounts, and moved every thing out of Brazil. Lock, stock and barrel as the saying goes.

 

Ecuadorians obtained a default judgment against Chevron for $18 billion. A default judgment means that Chevron did not oppose the lawsuit in any fashion. Nor did Chevron appear in defense of the lawsuit.

 

Ecuadorians now have an $18 billion judgment against one off the world's riches oil companies. How do Ecuadorians collect it? Chevron left no assets in Ecuador which could be attached.

 

Chevron basically gave the finger to the Ecuadorians and said screw you.

 

Ecuadorians are now trying to attach Chevron's bank accounts in New York City banks. The International World Court is involved. The move does not appear hopeful. Chevron may have been morally incorrect, but what they did appears legal. Ecuadorians are going to have an extremely hard time collecting any money.

 

Now comes Brazil. Chevron involved one again.

 

Chevron was pumping oil via rigs in the Atlantic Ocean off the coast of Rio de Janiero. Transocean owned the rigs. The same Transocean that was involved in the gulf BP oil spill.

 

A major leak and resultant spill occurred.

 

Brazil was fearful Chevron was going to do to it that which it did to the Ecuadorians. Pack up and skip town. Leaving Brazil with no one to pay the damage.

 

Brazil was fearful Transocean would play the same game.

 

Brazil acted promptly and diligently. Brazil obtained a court order prohibiting 17 of Chevron and Transocean's top employees from leaving Brazil. Chevron is now stuck and will be required to defend any lawsuit and pay any judgment obtained. There will be no replay of the Ecuador scenario in Brazil.

 

One neighbor learned from another. Fool me once, it happens. Fool me twice, it is not going to happen.

 

Good for Brazil!