Staff of Brazil's Ibama recommend against Petrobras drilling Amazon region

Two sources with knowledge of the matter said that the technical staff at Brazil's environment agency Ibama recommended to the body that it deny Petrobras permission to drill in the environmentally sensitive Foz do Amazonas area.

Rodrigo Agostinho, Ibama’s president, will make the final decision. Brazil's president Luiz Inacio Lula Da Silva has put pressure on the agency by saying earlier this month, "Ibama seems to be working against the government," due to the agency's delay in granting the drilling license.

One source said that the license was denied in part due to the fact that there had not been a major change made in terms of how local wildlife would be helped in case of an accident.

Ibama, in May 2023 denied Petrobras’ request for an offshore oil drilling license in the Foz do Amazonas region off the coast Amapa state. The reason given was environmental concerns. Ibama has yet to make a final decision on the appeal filed by Petrobras.

Petrobras wants to drill offshore in Brazil's Equatorial Margin. The northernmost part of this area is Brazil's oil frontier. It shares geology with Guyana, near which Exxon Mobil has developed huge fields.

(source: Reuters)