Brazil’s state oil company Petrobras plans to begin drilling in the Foz de Amazonas Basin by the end of this month, Reuters reported, citing sources close to the company. Petrobras is currently waiting for coral clearing at the drilling site to finish before starting actual drilling operations.
This development follows news that Petrobras is close to receiving conditional approval from Brazil’s environmental agency Ibama for its oil spill response plan. Ibama recently approved the theoretical and methodological parts of the plan, allowing Petrobras to move to the final stage: a large-scale on-site emergency drill called the Pre-Operational Assessment. This simulation will test Petrobras’ readiness for handling a potential oil spill before Ibama grants full permission to drill in the sensitive basin.
Ibama had rejected Petrobras’ drilling plan in this area two years ago after environmental protests. The basin is near the mouth of the Amazon River and sits within a fragile ecosystem, which sparked strong opposition.
Despite environmental concerns, the Brazilian government is pushing to increase oil and gas production alongside its energy transition goals. The Foz de Amazonas Basin is part of the Equatorial Margin offshore region, which also includes the Pará-Maranhão and Barreirinhas basins. The area is believed to hold large oil and gas reserves. Its geology is thought to be similar to Guyana’s offshore region, where Exxon has discovered billions of barrels of oil and developed several projects.
Earlier this year, Brazil’s oil regulator announced a tender for new blocks in the Foz de Amazonas Basin, set for next month. If Petrobras receives final drilling approval, it could encourage more companies to participate in the upcoming auction.
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