MercoPress. South Atlantic News Agency

Amazon: Petrobras cleared to start drilling on Equatorial Margin

In recent years, the Equatorial Margin has garnered significant attention following oil discoveries in nearby nations

Brazil's state-owned oil company, Petrobras, has received a license from the Brazilian Institute of the Environment and Renewable Natural Resources (Ibama) to begin exploratory oil drilling on the Equatorial Margin of the Amazon, an area with high hydrocarbon potential, it was announced on Monday.

Drilling will begin “immediately” in deep waters off the state of Amapá, about 175 km from the coast and 500 km from the mouth of the Amazon River. The initial phase is expected to last five months to assess the commercial viability of oil and gas.

The Foz do Amazonas basin in this region is estimated to have a recoverable potential of up to 10 billion barrels of oil equivalent.

Ibama granted the authorization after a rigorous process, which included impact studies and significant improvements to Petrobras' environmental response plans, such as the creation of a new wildlife care center. Ibama had initially rejected the request in 2023. This time, the authorization came after impact studies, three public hearings, 65 technical meetings, and the participation of more than 400 people in emergency drills.

The move has drawn harsh criticism from environmental organizations, who warn of risks to biodiversity and argue the initiative contradicts Brazil's goals for an energy transition, especially since the country is hosting the COP30 climate summit in the Amazonian city of Belém next month. Lula, however, maintains that hydrocarbon extraction is needed to finance the shift to clean energy.

Petrobras President Magda Chambriard described the approval as “an achievement for Brazilian society” and emphasized that the company complied with all requirements set by the environmental agency. She noted that “it took five years of dialogue with governments and environmental entities. We will operate in the Equatorial Margin with safety, responsibility, and technical quality.” Petrobras maintains that the Equatorial Margin is strategic to ensure Brazil's energy self-sufficiency in the next decade.

In recent years, the Equatorial Margin has garnered significant attention following oil discoveries in nearby nations like Guyana, Suriname, and French Guiana. In Brazil, this region spans from Rio Grande do Norte to the state of Amapá.

Licensing began in 2013, when British company BP won the bid for the area, which was transferred to Petrobras in 2021.