Brazil to Expand Oil Exploration After Petrobras Receives Approval to Drill Near Mouth of Amazon

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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--The Brazilian Institute of Environment and Renewable Natural Resources (Ibama) granted Petrobras (Rio de Janeiro, Brazil), the state national company, the permit to drill the Morpho well in the Block FZA-M-59 in the Foz do Amazonas basin, near the mouth of the Amazon River.

Ibama canceled the license in May 2023 due to environmental concerns, but following public hearings, additional impact assessments, technical meetings, and inspections, the agency approved Petrobras' drilling operations.

Part of the oil company's environmental pledges includes detailing plans for environmental response: three offshore vessels dedicated to oiled wildlife rescue, four nearshore vessels for rapid intervention, two large-scale centers for wildlife rehabilitation and de-oiling, and more.

Environmental groups have adamantly rejected energy developments in the Foz do Amazonas basin, including the government's environmental minister, Marina Silva.

President Luiz Inacio Lula da Silva has been trying to balance Brazil's growing oil production, which is now flirting with the 4 million-barrels-per-day (BBL/d) mark, and the increasing deployment of renewable sources and environmental protection. However, the announcement on the Foz do Amazonas is regarded as a setback for environmental groups, which are preparing to host COP 30 in Brazil's Belem in November.

Petrobras will use a drillship, which is already on site, for the next five months to gather geological data and determine the economic viability of oil and gas development.

Exploration in the promising Foz do Amazonas basin could boost Petrobras and Brazil's hydrocarbon reserves and oil production.

Petrobras' 2025-2029 strategic plan includes drilling 15 exploration wells in the Equatorial Margin, where Block FZA-M-59 is located, with planned investments of US$3 billion.

"We will operate in the Equatorial Margin with safety, responsibility, and technical excellence. We expect to achieve excellent results in this research and confirm the existence of oil in the Brazilian portion of this new global energy frontier," said Magda Chambriard, president of Petrobras.

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