Prosecutors Press Brazil Regulators on License to Drill Near Amazon Mouth

Tuesday, July 30, 2024

Brazilian prosecutors, who have recommended that environmental agency Ibama block drilling by state-run oil company Petrobras near the mouth of the Amazon river, have demanded that Ibama respond within three days, a document seen by Reuters shows.

The federal prosecutors office (MPF), an independent agency, filed a July 22 notice that appeared on Ibama's system on Monday, warning that an unjustified delay in replying could have "civil, administrative and penal" consequences.

The deadline of three working days will start from the moment Ibama confirms it was notified, the MPF said in a statement to Reuters, adding that the current notification was sent because there had been no response to previous letters.

MPF did not detail what measures it would take if Ibama again does not respond.

Petrobras and Ibama did not immediately respond to requests for comment.

In May 2023, Ibama denied Petrobras' request for an offshore drilling license for the Foz de Amazonas area off the coast of Amapa state. The oil company appealed soon after.

The Equatorial Margin at the northern end of the area is Brazil's most promising oil frontier, sharing geology with nearby Guyana, where Exxon Mobil is developing huge fields.

Ibama President Rodrigo Agostinho said last month he expected a decision soon.

Last August, prosecutors recommended that Ibama deny the appeal, citing possible harm to local Indigenous communities and the environment.

The prosecutors' notice to Agostinho said it is the duty of those who receive their recommendations to reply, and that not doing so could be punishable with a prison sentence of one to three years, in addition to a fine.

The Petrobras plan has opened a rift in President Luiz Inacio Lula da Silva's government between environmentalists and advocates for regional expansion of the oil and gas industry.

Petrobras and Lula have been pressuring Ibama to issue the license, with Lula saying in June that he will not "throw away any opportunity to make this country grow."


(Reuters - Reporting by Fabio Teixeira; Editing by Richard Chang and Sandra Maler)

Categories: Offshore Drilling

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