International oil firms operating off Brazil are suddenly finding themselves under close government scrutiny

In South America, two confrontations between foreign oil firms and the governments of Brazil and Argentina should serve as stark reminders for investors of the continuing challenges of operating in the continent.

In Brazil, prosecutors are attempting to ban two oil firms – US-based Chevron and Swiss-based Transocean Ltd, its contracted drill-rig operator – from working in the country. Bloomberg News reported that prosecutor Gisele Porto had asked that “the two companies must be suspended from operating until they stop environmental damage from the November leak off the coast of Rio de Janeiro.” (more…)