A federal court in Brazil on Aug. 1 ordered Chevron and drilling company Transocean to suspend all oil drilling in the country within 30 days in the wake of two oil spills off the coast of Rio de Janeiro. A judge for Brazil's Regional Federal Court of the Second Region ruled that each company must pay 500 million reals, or $244 million, for every day that they do not comply with the suspension. In November, a Chevron appraisal well leaked 155,000 gallons of oil. In March, oil started leaking again from the well and Chevron suspended production in that oil field. In its ruling, the court rationalized that two oil spills in the span of four months demonstrated that Chevron and Transocean cannot operate the wells safely. Chevron plans to appeal the ruling, saying that it complied with all applicable laws and industry standards. 

Regional security has been seen as the biggest challenge for the planned trans-Afghan gas pipeline—officially the Turkmenistan-Afghanistan-Pakistan-India (TAPI) project, which would pass the war-torn Afghan provinces of Herat and Kandahar as well as Pakistan's restive Baluchistan province. But recent reports of a rival pipeline project being negotiated between China, Turkmenistan and Afghanistan may pose a more fundamental threat to the TAPI. On June 6-8, on the sidelines of the Shanghai Cooperations Organization summit in Beijing, Afghan President Hamid Karzai met with Chinese President Hu Jintao and China National Petroleum Corporation's (CNPC) head Jiang Jiemin to discuss the proposal. CNPC offered to conduct a technical and economic feasibility study for the proposed project on Afghan and Tajik territories. That the route would avoid the conflicted Pashtun-dominated areas of southern Afghanistan, making the project more attractive for investors. India's Institute for Defence Studies and Analyses says the Chinese pipeline could undermine the TAPI "akin to the manner in which TAPI played spoiler to the Iran-Pakistan-India (IPI) pipeline project." (IDSA, July 31)