Petrobras Simulation for Foz do Amazonas Drilling License scheduled for late August

Ibama, the Brazilian environmental agency and Petrobras, the state-run oil firm in Brazil's Foz do Amazonas Region have planned a disaster simulation for the week beginning August 24.

Pre-operational assessment is the final step before Ibama decides whether or not to grant Petrobras the long-sought license for drilling in the region.

Foz do Amazonas basin shares geology with Guyana, which is where Exxon Mobil has developed huge oil fields.

Petrobras spent many years seeking permission to drill in an environmentally sensitive area that contains coral reefs, coastal indigenous communities and vast areas of land.

Oil majors bought 19 blocks at an auction in Foz do Amazonas in June. Petrobras partnered with Exxon on 10 blocks, and a consortium led by Chevron with China's CNPC acquired nine blocks.

The acquisitions took place despite the fact that Ibama President Rodrigo Agostinho had said it would take years to finish a complex environment study called an AAAS. Reporting by Marta Nogueira, Fabio Teixeira and Andre Romani in Rio de Janeiro. Writing by Andre Romani. Editing by Kylie Madry.

(source: Reuters)