A business analyst says the nearly $11 billion lawsuit filed by Brazilian prosecutors against San Ramon, Calif.-based Chevron Corp. because of an offshore oil leak could scare away foreign capital needed to develop Brazil's huge offshore oil deposits.
Robert Kessler is head of Pickering, Holt & Co.'s global integrated oil research department. He says the $10.6 billion fine federal prosecutors are seeking is more than 700 percent of Chevron's $1.5 billion net capital investment in Brazil.
He says Friday that such a fine "would be a poor risk-reward ratio for all companies looking to invest in the business."
The leak that occurred in November spilled nearly 3,000 barrels of oil into the Atlantic Ocean.