Petrobras readies veterinary center as condition of Equatorial Margin drilling

Petrobras expects to ready a veterinary center in the Amazon to care for animals in the event of an oil spill by the end of March, two sources told Reuters on Monday.

The animal care center in the northern state of Amapa is one of the main demands from Brazil's environmental agency Ibama still not met by Petrobras in order to potentially get approval to drill in an offshore area near the Amazon River.

Ibama blocked Petrobras from drilling the well in the environmentally sensitive region in 2023, but the company filed a new request, which the agency is currently assessing, with no deadline to give a final answer.

Far-left Brazilian President Luiz Inacio Lula da Silva has defended Petrobras' bid to explore the region. "Ibama is a government agency that seems to be against the government," he said last week.

Petrobras CEO Magda Chambriard said on Monday that if Ibama grants the license for the exploratory campaign at the mouth of the Amazon, the company will do everything “extremely safely” and will have the, “best emergency apparatus in the world.”

The works to build the veterinary center are in their final stages, the sources said, but added that they have faced a delay due to rains in the region. Initially, they said, Petrobras was expecting to finish the center in February.

The so-called Equatorial Margin is Brazil's most promising oil frontier, sharing geology with nearby Guyana, where Exxon Mobil is developing huge fields.

While the region holds great potential for Petrobras, the firm has faced stiff resistance from local Indigenous communities and federal prosecutors related to its bid to drill there

Reuters reported last October, citing documents, that the head of Ibama, Rodrigo Agostinho, asked Petrobras for further details concerning the request, even after experts at the agency advocated that the request be dismissed.

Petrobras director of exploration and production Sylvia dos Anjos said last month that she expects the firm to receive approval from Ibama in the first quarter of this year.

(Reporting by Rodrigo Viga Gaier; Writing by Andre Romani; Editing by Kylie Madry and Mark Porter)