Brazil’s Finance Minister Discusses Safe Equatorial Drilling

Brazilian Finance Minister Fernando Haddad said on Canal Livre Sunday that Brazil may tap oil in the Equatorial Margin. He stressed doing it safely for nature.

He added the real goal is using renewable energy. “We should use oil only until we don’t need it,” he claimed. Haddad believes oil’s relevance may last another 30 years at most.

The Finance Minister backs Brazil’s Eco-Transition Plan as a real growth engine. He described Petrobras’ president as “forward-thinking.”

A stalemate exists within the government on this issue. Last Tuesday, the Environment Minister denied getting any notice about an oil drilling committee.

Last Thursday, the Mines and Energy Minister confirmed a committee will soon start work.

He said it would include members from his department, the Environment Ministry, and two other agencies.

Background

In 2023, Petrobras targets Brazil’s Equatorial Margin for new oil and gas activities. The area holds promise for future production.

The company focuses on low-cost and low-emission oil. Drilling near the state of Amapá waits for an environmental license.

Brazil gets 75% of its oil from the Santos Basin. Yet, new discoveries there are becoming rare. The Equatorial Margin offers a solution for stable production after 2030.

The Amazon Forest is nearby. This brings up issues like effects on local communities and biodiversity. Additional worries include waste, air traffic, and fishing.

Environmental groups criticize Petrobras for risking sensitive sea habitats. Industry experts say the project could boost revenue and jobs in northern Brazil.

They claim safety steps will cut risks.

Earlier attempts to explore the area faced roadblocks, mainly licensing issues. Petrobras now pledges $6 billion for 16 new wells between 2023 and 2027.

Petrobras waits for a license to start drilling. Meanwhile, the firm studies possible impacts and explores tech solutions for a safe operation.

Other oil companies are watching closely, ready to make their own moves.

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