Brazil environmental agency approves Petrobras emergency drill results in Foz do Amazonas

Documents seen by revealed that Petrobras passed the emergency response test set by environmental regulators for the Foz do Amazonas Basin on Wednesday. This marks a major victory for the state oil company in its goal to drill in this environmentally sensitive area.

The company's long-awaited drilling license will be decided by the Brazilian environmental agency Ibama, following the August inspection.

Documents show that Ibama requested adjustments to the emergency plan in its decision before the licensing process was completed.

This exercise was designed to test Petrobras’ response to an oil spill. It involved over 400 people as well as a variety of logistical resources, including large vessels, helicopters and a drilling platform at the location where the well will be drilled.

Minutes from a meeting of Ibama employees show that initially there was no consensus as to whether Petrobras had passed the test. The final report of the agency approved the test and listed "points to attention and improvements."

A source familiar with the decision-making processes at Ibama said, "Yes, in what matters it was approved."

Petrobras considers the area at the mouth of Amazon to be its most promising oil frontier. It shares geology with the nearby Guyana where Exxon Mobil has developed huge fields. Oil industry experts believe there is a significant amount of potential to find large amounts of oil and gas in this region, which is part of Brazil's so called Equatorial Margin.

Ibama made his decision as Brazil prepared to host the global summit on climate change COP30 in November this year, which will be held in the Amazonian town of Belem. This role positions Brazil to become a leader when it comes to global warming.

Call on the International Community

Accelerate the transition away from fossil fuels. Environmentalists have criticized Brazil's stark contrast between its energy policies and climate leadership ambitions.

In June

oil block auction

Two consortia involving Petrobras, Exxon Mobil and China's CNPC secured 10 blocks, while a Chevron led consortium acquired nine blocks.

Ibama refused Petrobras' request to drill in 2023. The company appealed immediately, creating a rift within the Brazilian government between environmentalists and those who pushed for oil and natural gas development.

Petrobras' emergency response test marked the end of its environmental licensing process. Rodrigo Agostinho is the head of Ibama and he has yet to decide whether or not to grant the license. He does not have a deadline for this decision. (Reporting and editing by Kylie Madry, Deepa Babington, and Fabio Teixeira)

(source: Reuters)