Brazil’s environmental agency Ibama postpones award of license to Petrobras in Amazon estuary region

The Ibama President, Rodrigo Agostinho, voiced his concern over Brazil’s decision to allow Petrobras, the state-run oil company, to explore the ecologically sensitive Foz do Amazonas basin without exhaustive studies.

He argued that the nation should have ensured a more detailed investigation of the potential environmental impacts as part of Petrobras’ strategic business planning.

The environmentally sensitive area, known as the Brazilian Equatorial Margin, has already halted one of its drilling projects by Ibama.

Agostinho emphasized the need for more extensive impact studies for the Equatorial Margin before drilling is permitted, pointing to a lapse in assigning exploration areas without proper analysis.

The matter extends beyond a single well, indicating a comprehensive review of oil exploration in this under-researched region.

Petrobras, conversely, contests the requirement for an Environmental Assessment of Sedimentary Area (AAAS) as a condition for obtaining a drilling license.

They claim no legal grounding for this, citing a recent Supreme Court decision they interpret as favorable.

Ibama, however, holds that the court ruling does not hinder them from necessitating AAAS or other measures.

This situation has led to a divide within the government, with some hoping exploration will fuel economic growth and others opposing the project due to environmental concerns.

An AAAS could take about three years to finalize if required, with Petrobras possibly assisting based on its collected data.

Petrobras has allocated US$3 billion to explore the Equatorial Margin from 2023-2027.

Despite their urgency, Ibama maintains a more cautious approach, stating they will request all necessary evaluations.

The final decision, Agostinho emphasized, will be based on technical considerations.