Five months ahead of hosting the COP30 climate summit, Brazil’s federal oil and biofuels agency, ANP, is preparing to auction 332 oil and gas exploration areas on June 17. Of particular concern are 47 blocks located along the Amazon’s northern coast, including the controversial FZA-M-59 block operated by state oil company Petrobras.
Located 175 kilometers (109 miles) off the coast of Amapá, FZA-M-59 has become a focal point of tension. Government leaders, including President Luiz Inácio Lula da Silva and Senate President Davi Alcolumbre, support the project. But environmentalists and Brazil’s environmental protection agency, IBAMA, warn of serious risks to marine ecosystems and Indigenous communities.
IBAMA had initially denied Petrobras a license, citing studies showing the risk of oil spills. Strong currents in the area could carry oil slicks across the Atlantic, reaching up to eight countries. In Brazil, the damage could affect the Amazon Reef, the world’s largest mangrove system, and traditional fishing and Indigenous territories in Amapá.
Despite these concerns, IBAMA is now close to approving Petrobras’s license. Environmental groups fear this decision could pave the way for further exploration in 34 nearby blocks and increase market interest in the 47 blocks up for auction.
The Amazon region has emerged as a key frontier for the fossil fuel industry. According to a report from InfoAmazônia and Global Energy Monitor, nearly 20% of newly identified global oil and gas reserves between 2022 and 2024 are in the Amazon, mostly off the coasts of Guyana and Suriname.
But while attention centers on FZA-M-59, similar risks are rising further south. In western Mato Grosso, the Parecis Basin—home to 21 of the blocks on offer—overlaps with 41 Indigenous territories. Local leaders say they were not informed. “We’re looking for information so we can prepare,” said Tereza Cristina Kezonazokero from Pareci Indigenous Land, located just 10 kilometers from one of the blocks.
According to the NGO Arayara, four of the blocks are within 10 kilometers of Indigenous land. Two territories—Ponte de Pedra and Estação Parecis—are completely surrounded. “They look like islands in the middle of oil blocks,” said Juliano Bueno de Araújo, Arayara’s technical director. The organization has filed two lawsuits seeking to remove the blocks from the auction.
In response, ANP told Mongabay that all Parecis blocks are at least 10 kilometers from Indigenous lands and protected areas. The agency said it received approval from both the Ministry of Mines and Energy and the Environment Ministry. ANP also noted that it is not responsible for consulting Indigenous communities and that companies must seek environmental licenses before starting any work.
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