Lula: Drill Amazon Oil Before Trump Claims It Like Greenland
Brazilian President Luiz Inácio Lula da Silva on Monday May 18 defended Petrobras’s planned oil exploration in the Margem Equatorial — Brazil’s offshore frontier in the Foz do Amazonas — with a quote already going viral in Brazilian and international media. Speaking at the Refinaria de Paulínia (Replan) ceremony where R$37 billion ($7.32 billion) in São Paulo investments was announced, Lula argued Brazil must occupy the offshore basin before US President Donald Trump claims it.
“Because suddenly Trump comes along, thinks it’s his and goes there. He thought Canada was his. He thought Greenland was his. He thought the Gulf of Mexico was his. The Panama Canal. Who’s to say he won’t think the Margem Equatorial is his too? So let’s occupy it,” Lula said, standing alongside Petrobras CEO Magda Chambriard. The quote directly references Trump’s repeated statements about US territorial expansion since returning to office in January 2025.
Lula combined the Trump-baiting with a strong defence of Petrobras itself. “It is the most profitable Brazilian company, the golden girl of Brazil. Strengthening Petrobras is very important,” he said, opposing privatisation discussions. Earlier in the ceremony, Lula also stated that Petrobras was “the most profitable company on planet Earth in the first quarter” of 2026 — a claim that overstates the data but captures the political messaging.
The Margem Equatorial is the offshore region 500 kilometres from the Amazon River mouth. The Brazilian Ministry of Mines and Energy estimates the Foz do Amazonas could yield 10 billion barrels of recoverable oil, generating $56 billion in investment and $200 billion in royalties and taxes over the life of the play. The region’s geology is similar to neighbouring Guyana, where ExxonMobil discoveries have transformed the small nation into a major producer since 2015.
Key Points
The Quotes
| Topic | Lula Statement |
|---|---|
| Trump claim risk | “Trump comes along, thinks it’s his and goes there” |
| Past Trump claims cited | Canada, Greenland, Gulf of Mexico, Panama Canal |
| Brazilian response | “So let’s occupy it” |
| Petrobras framing | “Most profitable company on planet Earth in Q1” |
| “Golden girl” | “Petrobras is the golden girl of Brazil” |
| Environmental commitment | “Nobody is more careful with the Amazon than we are” |
| Magda Chambriard’s quote | “Agro grew 12% — we grew 16%” |
Live Company IntelligencePetroleo Brasileiro Petrobras SA ADR — the full investor dossier
Wall Street view
Valuation & profitability
Price & risk
$10.6552-wk high
$21.44
Revenue trend · 6y
Ownership
Dividend
Why It Matters
Lula’s Trump-baiting framing is strategically deliberate. As the Rio Times reported on BNDES President Mercadante’s pre-salt comparison, the Margem Equatorial is the single most strategic Brazilian oil-exploration frontier. The Brazilian Ministry of Mines and Energy estimates 10 billion barrels of recoverable oil — comparable to ExxonMobil’s discoveries in Guyana since 2015, which have transformed the small neighbouring country into one of the world’s fastest-growing oil producers.
The political timing is the key. Brazil’s environmental regulator Ibama approved Petrobras drilling in Foz do Amazonas on October 20, 2025, after a five-year licensing impasse. Critics — particularly NGOs and the Lula government’s own environmental allies — have argued the drilling threatens the rare coral bioma in the region. By framing the drilling as defensive territorial sovereignty against Trump rather than commercial oil expansion, Lula reduces domestic environmental political pressure.
The “most profitable company on Earth” framing overstates the data but captures the messaging. As the Rio Times reported on the simultaneous R$37 billion ($7.32 billion) São Paulo investment announcement, Petrobras CEO Magda Chambriard is explicitly aligned with Lula’s industrial-policy agenda. Q1 2026 profit reached approximately R$30 billion ($5.94 billion) per analyst estimates — substantial but not literally the global leader. The political messaging matters more than precision.
CEO Chambriard added her own quote to the political moment: “They said the agro sector grew 12% and that was good — we [Petrobras] grew 16%.” The comparison directly responds to Brazilian agribusiness lobby criticism of Petrobras dividend cuts and government intervention. As the Rio Times reported on Banco do Brasil’s Q1, agro NPL hit 5.05 percent — the agribusiness sector is struggling while Petrobras outperforms.
The broader Lula-Trump dynamic remains complex. Separately on the same day, Lula said he expects the United States to partner with Brazil on rare earths exploration — a critical materials category where China currently dominates global supply. The Pentagon has reportedly developed a plan to reduce Chinese rare-earth dependence that includes Brazil. Lula’s combination of Trump-baiting on Margem Equatorial plus rare-earth-partnership signaling captures the bipolar nature of contemporary Brazil-US relations under both administrations.
10B barrel resource potential. +34% Brazilian reserves possible from Foz alone.
Political mandate confirmed. Lula directly defending project on national TV.
Petrobras CEO aligned. Chambriard publicly framing aggressive growth.
Environmental backlash building. Coral bioma + COP30 hosting + global scrutiny.
Reserves unconfirmed. “Drill bit must hit oil” — geology still tested.
Trump-baiting risk. May complicate Brazilian export-tariff diplomacy.
Frequently Asked Questions
What did Lula say about Trump?
Speaking at the Replan refinery ceremony Monday May 18, Brazilian President Lula said: “Because suddenly Trump comes along, thinks it’s his and goes there. He thought Canada was his. He thought Greenland was his. He thought the Gulf of Mexico was his. The Panama Canal.”
“Who’s to say he won’t think the Margem Equatorial is his too? So let’s occupy it.” The quote argues Brazil must drill its Amazon offshore oil before the US claims it like other territories Trump has discussed since returning to office.
How much oil is in the Margem Equatorial?
The Brazilian Ministry of Mines and Energy estimates approximately 10 billion barrels of recoverable oil in the Foz do Amazonas — the most prospective basin within the broader Margem Equatorial region. The Ministry projects the exploration could generate $56 billion in investment and approximately $200 billion in royalties and tax revenue over the productive life.
The region’s geology is similar to neighbouring Guyana, where ExxonMobil discoveries have grown to over 11 billion barrels since 2015, transforming Guyana into a major global oil producer.
When will drilling start?
Brazilian environmental regulator Ibama approved Petrobras to drill in the Foz do Amazonas block FZA-M-059 on October 20, 2025, after a five-year licensing impasse. The first exploratory well “Morpho” is now being drilled, with initial results expected within approximately five months.
Petrobras plans to drill 15 wells total in the broader Margem Equatorial region with approximately $3 billion ($594 million annual rate) capex through 2029. Petrobras is the sole operator after Total and BP exited the consortium during the licensing dispute.
Updated: 2026-05-18T16:00:00-03:00 by Rio Times Editorial Desk
Lula Margem Equatorial Trump | Petrobras Foz do Amazonas | Magda Chambriard | 10 billion barrels | Replan ceremony | The Rio Times
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
Read More from The Rio Times