16.12.11

Sedco 706: Brazil sues Transocean for $10.6 billion

Sedco 706


The suit, which includes Chevron, could jeopardize oil companies' plans to step up their presence in Brazil after the discovery of huge offshore reserves several kilometers (miles) beneath the ocean floor estimated at 50 billion barrels or more.

Reaching that oil will be technically challenging but Brazil expects it will push its crude output to 7 million barrels a day by 2020. That could see it challenge the United States for the rank of world No. 3 oil producer after Russia and Saudi Arabia.

It also risks alarming foreign oil companies eager to expand in one of the world's fastest-growing oil frontiers, where state-controlled oil company Petrobras accounts for more than 90 percent of the output, and government leaders are moving to assert even greater control of natural resources.

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