Chevron and Transocean reach agreement regarding Brazilian offshore procedures

December 11, 2012
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Agreement on Brazilian Offshore Procedures

Within Brazil, arbitration and dispute resolution tactics have risen in recent years, as more businesses invest in the resources of this country and attempt to solve any problems arising from business dealings. The Brazilian arbitration law was passed in 1996, which led to an explosion of arbitration proceedings within the country over the past 15 years.

International commercial disputes are better resolved and settled before going to court, as lawsuits tend to cost companies millions of dollars. Foreign investment in Brazil has surged in recent years, which also contributes to the expansion of arbitration services in the nation.

Impartial local centers have also been instituted within the country to help businesses resolve their problems before going to court. Law firms in Brazil also include experienced and knowledgeable attorneys who offer arbitration and dispute resolution services to companies of any industry.

Chevron Corp and Transocean Ltd are two companies that may have benefited from undergoing arbitration proceedings instead of investing in lawyers for a $20 billion lawsuit due to an oil spill that took place in November 2011. Reuters reported that the two companies have made an agreement to change offshore operating and safety procedures in Brazil.

"The agreement, known as a "change-of-conduct accord," was drafted at the companies' request with federal prosecutors who are handling two civil lawsuits against Chevron and Transocean," the news source stated. "The lawsuits are the largest-ever environmental prosecutions in Brazil."

However, reports show that no one was hurt in the oil spill accident and no oil reached the shores. Also, no visible environmental impact was recorded, according to the source.

Businesses investing in the resources of Brazil who have encountered disputes with other companies would be wise to contact a Brazilian attorney with experience in arbitration and dispute resolution.

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