Oil production unit serving Petrobras paralyzed due to regulatory issues

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.

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.