Petrobras' drilling in Foz do Amazonas is put on hold by Brazil's oil regulator

The Brazilian oil regulator ANP told Petrobras on Thursday that the company could not resume offshore drilling until it provided information about a 'leak' of synthetic fluid in this environmentally sensitive area.

Documents signed on Wednesday by ANP and seen by others earlier recorded the decision.

ANP stated in a press release that Petrobras was required to report the cause of the "leak" and mitigation measures. Foz do Amazonas, the large delta formed where the Amazon River meets the Atlantic Ocean on the coast of north Brazil is the largest delta in the world.

Petrobras didn't immediately respond to a comment request, but previously stated that it had contained the spill and the fluid was?biodegradable. It poses no harm to either the environment or people.

Petrobras

Spend Years

The region is considered the most promising oil frontier in the world because of its geology, which shares similarities with Guyana, where ExxonMobil has developed huge fields.

Activists and indigenous organizations in the area have been warning for years about the potential impact of oil exploration on marine and coastal ecosystems.

Documents seen by revealed that Petrobras did not know the cause of the accident during a meeting on Wednesday with ANP officials.

Documents also revealed that the leak was larger than originally reported, at 18 cubic meters (23.54 cu yards) instead of 15 cubic meters.

A source with knowledge of the matter said that the oil regulator will inspect the drilling rig by February. She added that drilling may resume earlier than then. The regulator refused to comment on the plans to inspect the site.

The drilling was scheduled to start in October, and last for approximately five months. Petrobras has planned to drill seven wells in the area. (Reporting by Fabio Teixeira and Marta Nogueira in Rio de Janeiro; Editing by Cynthia Osterman)

(source: Reuters)