Located in the north of Brazil, between the states of Amapá and Rio Grande do Norte, the Equatorial Margin has important oil potential Petrobras
Drilling & Production

Petrobras hit with fresh scrutiny over Foz do Amazonas drilling license

Reuters

Brazil's environmental agency Ibama has requested additional information from state-run oil firm Petrobras as part of the licensing process for drilling in the Foz do Amazonas Basin, according to documents seen by Reuters on Tuesday.

The agency also proposed a meeting on Thursday after a new technical report flagged "pending issues and uncertainties" in Petrobras' emergency and wildlife protection plans.

Ibama had approved an emergency response test conducted by Petrobras in August, but asked for adjustments before deciding on the license.

In a statement, Petrobras said it, "will respond to all of the agency's inquiries, as it has done since the beginning of the process and in full compliance with the requirements of the environmental licensing procedure."

The company added that several technical meetings are scheduled this week and it remains confident the license will be issued soon.

Speaking at an event in Rio de Janeiro on Tuesday, Petrobras CEO Magda Chambriard said she was surprised by Ibama's request for further information, but reaffirmed her support for expanding oil exploration.

Chambriard expects the license to be granted by October 16, and warned that if not approved by October 22, Petrobras would need a new drillship.

Reuters reported last week that Petrobras has incurred BRL180 million ($32.8 million) in standby costs for the drillship while awaiting the license.

The company has been pursuing approval for years to drill in the region, believed to hold significant reserves, but faces strong resistance due to social and environmental concerns.

On Monday, the oil workers' federation (FUP) said Petrobras has spent over BRL1 billion on environmental licensing since 2022, including BRL543 million on rig rental, BRL327 million on vessels, and BRL142 million on air services.

(Reporting by Marta Nogueira and Rodrigo Viga Gaier; Writing by Isabel Teles; Editing by Chris Reese)