BRAZIL · AMAZON OIL AND GAS
Key Facts
- What happened A federal court suspended Amazon Basin oil and gas leases; prosecutors announced it on 4 November.
- The leases Three exploration blocks and one small gas field area, covering about 869,500 hectares, or 3,360 square miles.
- The condition Work stays frozen until Indigenous, river and quilombola communities are consulted; Brazil has 90 days to start.
- The penalty Missing the deadline costs R$250,000 a day (US$46,000), capped at R$100 million (US$18.3 million).
- Companies Atem Participações and Eneva hold the leases and may not explore or run studies meanwhile.
- Power Index Brazil ranks 1st of 14 in The Rio Times Latin America Power Index, with 74.2 points (November 2026 edition).
A Brazilian federal court has suspended four Amazon oil and gas leases until Indigenous and river communities are consulted first. Federal prosecutors announced the ruling on Wednesday 4 November.
The leases cover about 869,500 hectares in the Amazon Basin, in 11 towns in Amazonas state and one in Pará state. The ruling freezes exploration by two Brazilian companies but does not cancel their contracts.
What the Court Ordered
The 7th Federal Environmental and Agrarian Court of Amazonas upheld part of a lawsuit filed by the federal prosecutors’ office. The ruling suspends the leases for blocks AM-T-63, AM-T-64 and AM-T-107 and for the Japiim marginal gas field area.
Brazil’s federal government and the National Petroleum Agency must start the consultation within 90 days. If they miss that deadline, the fine is R$250,000 a day (about US$46,000), capped at R$100 million (about US$18.3 million), at R$5.4621 per US$1.
Why the Consultation Is the Issue
Brazil follows International Labour Organization Convention 169, which requires governments to consult Indigenous and traditional peoples before projects that affect them. The court said this right does not depend on a formal land demarcation.
The judge also said leaving the consultation to the later environmental licence is too late, because the blocks were already offered and sold at auction. Public hearings and statements from the Indigenous affairs agency Funai do not replace asking the communities directly.
Where the Blocks Are
The areas lie in 11 municipalities of Amazonas, including Manaus, Parintins and Itacoatiara, and in Faro in Pará. A prosecutors’ technical report puts them in the direct influence area of five Indigenous territories.
The court recognized possible effects on the Mura, Munduruku, Sateré-Mawé and Maraguá peoples, as well as river and quilombola communities. The areas also overlap the Guajuma protected area and sit near other conservation units.
In Plain English, Who Is Who
Atem Participações owns the Amazonas refinery in Manaus, and Eneva is a Brazilian energy company. They won the Japiim area together in a December 2023 auction run by the National Petroleum Agency, known as ANP.
Quilombolas are communities descended from escaped enslaved people, and a marginal accumulation area is a small, already-discovered field. Block names such as AM-T-63 are the numbered tracts that the ANP offers for exploration.
What It Means for You
This is an inland Amazon Basin case, separate from the offshore drilling dispute at the river’s mouth. US investors should note that this court treats community consultation as a condition that must come before exploration, not after.
The ruling does not cancel the auction or the contracts, so the contracts remain in place while the consultation runs. It concerns these four areas only, and it comes as Amazonas faces a severe drought.
What Is Not Known
Whether the federal government, the ANP, Atem or Eneva will appeal is not stated, and each can file an appeal to the regional federal court. The case file, number 1005308-95.2024.4.01.3200, will show any appeal.
How the consultation will be run is not yet set. The federal government and the ANP were ordered to organize it and can say how within the 90-day window.
More: Latin America news in English, every day from The Rio Times.
Frequently Asked Questions
What did the Brazilian court suspend?
It suspended oil and gas leases for blocks AM-T-63, AM-T-64 and AM-T-107 and the Japiim gas field area in the Amazon Basin. The suspension lasts until affected communities are consulted.
Who brought the case?
Brazil’s federal prosecutors’ office, known as the MPF, sued the federal government, the National Petroleum Agency, Atem Participações and Eneva. The court upheld part of the request.
Did the court cancel the auction?
No. The ruling did not cancel the auction or the signed contracts, but it bars exploration and studies until consultations finish.
How big is the area?
The leases cover about 869,500 hectares, or 3,360 square miles. They lie in 11 municipalities of Amazonas and one in Pará.
Sources: Federal Public Prosecutor’s Office (MPF) in Amazonas, release on the ruling, 4 November 2026; 7th Federal Environmental and Agrarian Court of Amazonas, public civil action 1005308-95.2024.4.01.3200, 2026; Banco Central do Brasil, PTAX exchange rate, 5 November 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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