Brazil's Petrobras moves closer to drilling in key offshore area

(Bloomberg) – Brazil’s state-controlled oil producer Petroleo Brasileiro SA said it has finished building a wildlife rescue center, marking a step toward its first exploratory well in a promising yet contentious region offshore the country’s Northern state.

The facility was cleared by Amapa state authorities, but still needs to pass an inspection by environment protection agency Ibama before starting operations, Petrobras said in a statement.

Its delivery fulfills the last pending requirement set by Ibama before deciding whether it will grant a permit for Petrobras to look for oil in the Foz do Amazonas Basin, an area that the company hopes contains reserves similar to discoveries made by Exxon Mobil Corp. in neighboring Guyana.

Following Ibama’s inspection, Petrobras will need to move its rig to the FAZ-M-59 block and hold a pre-operational assessment to prove the effectiveness of its emergency plans in case of an oil spill. Ibama will then decide on the permit.

Petrobras’ earlier request to drill in the region was blocked by Ibama in 2023 over social and environmental concerns.