Petrobras appeals deepwater Foz do Amazonas drilling veto

May 25, 2023
Petrobras plans to file a request this week with Brazilian environmental protection agency Ibama to reconsider a block on drilling in a deepwater area offshore the mouth of the Amazon River.

Offshore staff

RIO DE JANEIRO, Brazil  Petrobras plans to file a request this week with Brazilian environmental protection agency Ibama to reconsider a block on drilling in a deepwater area offshore the mouth of the Amazon River.

Ibama recently refused an environmental license to drill an exploratory well in Block FZA-M-059 in the Foz do Amazonas Basin in the Amapá region, in accordance with a procedure provided for in the regulations.

Petrobras will state that it has fulfilled the requirements in the reference legislation for the bidding process for Block FZA-M-059 and had complied with all the technical requirements stipulated by Ibama for the project.

The company said its proposed emergency response would be the largest deployed to date in Brazil, but it would be ready to meet any additional demands that may be imposed.

Petrobras noted that the Sedimentary Area Environmental Assessment is a policy instrument under the shared responsibility of Brazil’s Ministries of Environment (MMA) and Mines and Energy (MME) according to Inter-Ministerial Ordinance No198/2012.

The company acquired Block FZA-M-59 in May 2013 under the 11th ANP Bidding Round. At the time, it points out, the award process for the blocks offered drew on the opinions of the GT PEG - Working Group that included Ibama, ICMBIO and MMA, which considered that FZA-M-59 was suitable to be offered and licensed.

Petrobras added it has a commitment, signed with the ANP, to drill eight exploratory wells in the Amapá Deep Waters region, and that refusal on the grounds of environmental unfeasibility may result in litigation and fine.

In addition, such a decision would compromise assessment of the region's potential, energy security and Brazil’s energy transition, the company claimed.

05.25.2023