Brazil’s Petrobras has completed an emergency drill in the Foz do Amazonas basin that will be followed by an official license to begin exploration drilling in the area, which has become the subject of environmental controversy.
The large-scale exercise simulates an oil spill to test Petrobras’ readiness for such an eventuality ahead of receiving the official go-ahead for exploration drilling in the area.
Petrobras has been trying for years to obtain a license to drill in Foz do Amazonas and the wider region known as the Equatorial Margin, which the company believes has a significant oil resource potential, especially in light of recent huge discoveries in nearby regions such as Guyana, French Guiana, and Suriname.
The emergency drilling, also referred to in reports as a pre-operational assessment of the exploration project, began on Sunday, Reuters reported, and was completed on Wednesday. Now, it is the turn of the Environmental Protection Agency, Ibama, to grant the exploration drilling license.
Ibama, for its part, has said it would begin reviewing Petrobras’ documentation regarding Foz do Amazonas in the next few days. The review should end with a report on the feasibility of Petrobras’ project. There is no deadline for that, Reuters noted in its report on the news.
Two years ago, Brazil’s environmental regulator rejected Petrobras’ plan for drilling in the area following environmentalist protests sparked by the news that the company had interests there. The basin is located close to the mouth of the Amazon River in a sensitive ecosystem, so the protests were hardly a surprise. Despite them, earlier this year, Brazil tendered more oil and gas blocks in the area.
Petrobras has earmarked $3 billion for investment and the drilling of 15 wells in the Equatorial Margin over the next five years. The Equatorial Margin is set to receive 38% of Petrobras’ total exploration investment of $8 billion.
By Irina Slav for Oilprice.com
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