September 23, 2019 / 7:23 PM / 25 days ago

Oil production unit serving Brazil's Petrobras paralyzed due to regulatory issues

RIO DE JANEIRO, Sept 23 (Reuters) - An oil production unit supporting the operations of Brazilian state-controlled oil firm Petroleo Brasileiro SA has been paralyzed since Sept. 19 due to regulatory issues, the operator, Modec, told Reuters on Monday.

The nature of the previously unreported irregularities was not immediately clear. However, Modec said the stoppage resulted from Operation Black Gold, a joint operation between a broad range of authorities, including the Brazilian federal police and labor and environmental regulators.

The ship-borne unit, which assists with production and storage of offshore oil, is located in Brazil’s Santos Basin. According to Brazilian oil regulator ANP, it was responsible for a relatively small 8,347 barrels per day of oil in July.

Reporting by Marta Nogueira; Editing by Dan Grebler

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