Oil spills do make news, but the penalty companies are made to pay are less talked about. Oil spillage is the most dreadful thing that can happen to the coastal ecosystem. Take the case of recent oil spillage that has happened in the Atlantic Ocean. Chevron, a multi-billion dollar oil major, was in the news for having spilled thousands of barrels of oil into the ocean. Brazil, of the many nations who were affected directly by the disaster, has come forward with a penalty.
The coasts of Rio de Janeiro are still not completely free from the repercussions the spillage has caused. IBAMA, a Brazilian environmental protection agency has decided to penalize Chevron. A $28 million fine has been slapped on the oil major. However, this may not be the case if they were not limited by Brazilian law. They are only allowed to impose a maximum fine of less than R$50 million ($28 million) per violation.
If you thought this penalty will be a severe blow to the alleged company, you are wrong. It will only account for the half of what Chevron makes as profit, each and every day. So that’s a small penalty for the big damage, right?
But Brazilian authorities are not ready to let Chevron, who have admitted that they have wronged, wash their hands off easily. Once the investigation is complete, IBAMA and Brazil’s National Petroleum Agency (APN) will charge them additional penal amounts.