UK Government Now Backing Loans for Offshore Oil Drilling in Brazil

New documents are suggesting that the UK government ignored risks in subsidiary oil extraction from nearly 2,000, deep in the Atlantic ocean. The British government is apparently subsidizing one of the world’s largest and riskiest oil drilling projects in the Atlantic Ocean. It could cost tens of millions of pounds if a major accident took place.

These reports show that the UK trade minister underwrote loans taken out by the Brazilian state-run energy company Petrobras back in 2005 in order for companies like Rolls Royce to contribute to the building of the giant P-52 platform.

This platform is now operating 125km off the coast of Brazil in 1,798 meters of water. This is much deeper than the BP’s Deepwater rig that exploded in April and led to the disastrous oil spill in the Gulf of Mexico. Needless to say, people are a little more than scared about this new project.

A 14 page environment report that was prepared by the UK’s Export Credit Guarantee Department makes no mention of blowouts or the equipment needed to prevent them. Ministers have edited out all of the UK Export Credit guarantee Department’s comments assessing the risks involving in deep sea drilling in the Atlantic.

The gas and oil reservoirs of the Campos basin are now considered some of the most hazardous in the world to even access. It pushes offshore drilling technology to its limit. The P-52 rig replaced one that exploded and sank due to human error back in 2001. This little event killed 11 people.

Today environmental groups accused the government of actually forcing British taxpayers to underwrite a project that could lead to a disaster. They say that this disaster would be similar to the spill seen in the Gulf of Mexico.