Lula Backs Petrobras' Oil Discovery in Mouth of Amazon Basin

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Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)

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Summary

Lula celebrates Petrobras' new oil discovery in the controversial Foz do Amazonas Basin, an exploration frontier opposed by environmental groups. The President is seeking to reconcile growing hydrocarbon production with Brazil's expansion of renewable fuels and energy.

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Lula Celebrates Discovery

Brazilian President Luiz Inacio Lula da Silva praised Petrobras' new oil discovery in the FZA-M-59 block, about 175 kilometers offshore the state of Amapa in the Foz do Amazonas Basin (Mouth of the Amazon Basin).

Lula's backing comes despite longstanding opposition from environmental groups to oil exploration in the Foz do Amazonas Basin. These groups cite risks to biodiversity and local communities, and the possibility of oil spills.

"Don't say that we won't take care of the environment," Lula said during his visit to Petrobras drillship. "We will continue to take care of it."

Petrobras' request to drill in the Foz do Amazonas Basin was denied by the Brazilian Institute of Environment and Renewable Natural Resources (IBAMA) in May 2023, citing a series of technical concerns.

In October 2025, the agency granted Petrobras a license to drill an exploratory well in FZA-M-059, where the company now has made an oil discovery.

According to Industrial Info Resources data, Petrobras plans to invest US$7.1 billion in exploration activities between 2026 and 2030, about 10% of its exploration and production investment protfolio. A total of US$2.5 billion are expected to be invested in the exploration of the Equatorial Margin to drill 15 new wells in the area, which includes the Foz do Amazonas Basin.

Striking a Balance

During his current mandate, Lula has backed both growing oil and gas production and the expansion of renewable fuels and energy.

Industrial Info Resources is tracking 218 oil and gas production projects from Petrobras in Brazil, totaling more than US$33 billion of investment. Industrial Info Resources offers more information on these developments in its Global Market Intelligence (GMI) Oil & Gas Project Database, where readers can find details--including construction schedules, investment values and necessary equipment--in a list of project reports.

Brazil is Latin America's largest hydrocarbon producer, with its output reaching 4.47 million barrels per day (bpd) of oil and 217.34 million cubic meters per day (m3/d) of natural gas in June.

Production has risen sharply as new offshore platforms ramp up in the Santos and Campos basins, thanks to pre-salt fields, whose development accelerated following major discoveries during Lula's previous mandates. These fields now account for most of the nation's oil and gas production.

In Search of New Resources

Despite the growing oil production, Brazil continues to increase its use of ethanol in gasoline and as a standalone fuel. In August 2025, Brazil increased its mandatory ethanol blend in gasoline from 27% to 30%, and on August 1, 2026, it temporarily increased the percentage to 32%. The increase expands domestic biofuel use and reduces Brazil's dependence on imported gasoline.

"Brazil will continue to be the country of innovation in biofuels and will continue to be very important in the area of renewable fuels," Lula said.

In renewable fuels, Petrobras sees the potential to increase production capacity eight- to 11-fold from 2022 levels, reaching between 74,000 and 95,000 bpd by 2030.

Industrial Info Resources is tracking 10 projects worth US$609 million that are part of Petrobras' plans to reach that goal. Readers can consult a list of project reports.

Lula's government has supported renewable energy sources, especially wind and solar, throughout his mandate. Under the government's Novo Pac plan, Brazil projected billions in investments to develop more than 100 power generation projects dominated by renewable technologies.

At the same time, Lula also signed Brazil's offshore wind framework into law in 2025, establishing rules for the development of offshore power projects.

Key Takeaways

• Lula supports Petrobras' new offshore discovery in the Foz do Amazonas Basin.
• Ibama granted Petrobras a drilling license in 2025 after denying the company's application in 2023.
• Lula seeks to balance growing hydrocarbon volumes with renewable fuels and energy.

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Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).