Brazil's federal environmental agency Ibama has authorized Petrobras, the state-controlled oil company, to drill three new exploratory wells in the Foz do Amazonas basin, an environmentally sensitive area off the country's northern Amazon coast. The decision was signed on Thursday (Sept. 3) by Ibama's president, Jair Schmitt, according to a document seen by Reuters and reported by Folha de S.Paulo and G1. The license requires Petrobras to submit an updated drilling schedule to Ibama within 30 days of receiving the authorization.
The wells will help determine whether Petrobras's recent oil discovery in the region is commercially viable. The company filed the drilling request in August, after its first well in block FZA-M-59 found signs of oil. G1 reported that production at the site could begin within up to seven years, a timeline that would open a new oil frontier for Brazil if the reserves prove viable.
Political backing
The approval strengthens Petrobras's push into the basin. In August, President Luiz Inácio Lula da Silva, Petrobras chief executive Magda Chambriard and Mines and Energy Minister Alexandre Silveira visited the NS-42 drillship operating in the area, according to Folha.
Prosecutors demand answers
The operation faces scrutiny from Brazil's Federal Prosecution Office, the MPF, which is pressing Ibama to explain inconsistencies in its account of the licensing process for block FZA-M-59. At a hearing in federal court in April 2025, Ibama representatives described the drilling as a one-off activity lasting about six months. In a later response to prosecutors, the institute said the project involves a campaign of four wells, with activities running from 2025 to 2029.
Prosecutors say the discrepancy undermines the transparency of the process and makes it harder to assess the environmental impacts. They argue that an operation spanning several years can have cumulative effects on marine wildlife, small-scale fishing and the way of life of traditional communities along the Amazon coast, and they want Schmitt to explain why Ibama gave different versions of the drilling's duration and planning.