The environmental regulator in Brazil has denied a license for an offshore oil drilling project located near the mouth of the Amazon River due to environmental concerns. Despite the request coming from the state-run company Petrobras, the regulator cited “technical inconsistencies” in the application, and stated that the project was strongly opposed by activists who warned of potential damage to the area.
Almost half of Petrobras’s $6bn five-year exploration budget had been set aside for the area, but the environmental regulator rejected the request for drilling. The company can now request a reconsideration of the decision.
Environmental experts and activists have expressed concerns over the potential harm to the biodiverse ecosystem near the mouth of the Amazon River, where the denied offshore oil drilling project was set to take place. The area is home to little-studied mangroves and a coral reef. Any leaks could spread via tides and cause damage to the sensitive ecosystem.
Various environmental organizations, including WWF Brasil and Greenpeace, lobbied for the license to be rejected until a thorough study could be conducted. The Tapajos basin, where the project was situated, is a sensitive region, and there is no turning back from any mistakes that may occur, especially considering the Brazilian government’s pledge to a decarbonized future.
The Climate Observatory, a group of environmental non-profits, supported the decision taken by Agostinho to protect an unfamiliar ecosystem, without forming opinions or beliefs as humans do. The group highlighted that this decision would help maintain the consistency of the Lula government’s commitment to fighting climate change.
The discovery of huge offshore reserves in Brazil’s northern region had previously become a means of financing health, education, and welfare programs. However, some members of the Workers’ Party continue to see oil as a means to ensure social progress.
Energy Minister Alexandre Silveira had described the area as a “passport to the future” for development in Brazil’s northern region, while former President Lula has highlighted environmental protection and conservation in his recent campaign to return to the presidency.
Activists and experts had warned that the approval for the offshore oil project could threaten the natural world and also dent Lula’s image as an environmental defender. The process to obtain the environmental license for the FZA-M-59 block began in 2014 at the request of BP Energy do Brasil, and exploration rights were transferred to Petrobras in 2020.
Suely Araújo, a Climate Observatory public policy specialist and former head of the environment agency, supported the decision made by Agostinho, highlighting the need for a broader debate about the role of oil in the country’s future.
While some of Lula’s political allies supported the decision to block the project, others like Sen. Randolfe Rodrigues expressed their disappointment, stating that the decision deprives people in his home state of Amapa of much-needed development and goes against research conducted in the state.
Sen. Randolfe Rodrigues expressed his concerns and announced that he would be leaving the center-left party, which includes Environment Minister Marina Silva as a leading member, as he disagreed with the decision to block the project, which he claimed would deprive people in his home state of Amapa of much-needed development.
In its statement, Petrobras claimed it adhered strictly to all licensing requirements for the project, which was situated over 500 kilometers (more than 300 miles) from the Amazon River’s mouth, in an area known as the Equatorial Margin.
The company remains committed to developing the Brazilian Equatorial Margin and exploring new sources to meet the country’s future oil demands. Controversial megaprojects in the Amazon, such as the construction of a major railway for grain transportation, the repaving of a highway cutting through the protected rainforest, and the renewal of a giant hydroelectric dam’s license, are still under consideration by the authorities.