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Petrobras is closer than ever to taking a colossal leap forward in the oil sector. The destination? One of Brazil’s last unexplored frontiers: the Equatorial Margin.
In the heart of this region, the Brazilian oil giant may have discovered 5,6 billion barrels of oil, which could completely change the game for the future of energy production in the country. But why hasn't this discovery come to fruition yet? And what is the real impact of this for Brazil and the world?
"If it is God's will!". It was with this confidence that the president of Petrobras, Magda Chambriard, declared, this Wednesday (04), that she awaits a final decision from Ibama (Brazilian Institute of the Environment and Renewable Natural Resources).
The approval of the license for the exploration of the Foz do Amazonas Basin, one of the five sedimentary basins that form the Equatorial Margin, could finally happen by December.
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The future of Petrobras and the Equatorial Margin
Environmental lockdown is nothing new. Petrobras has been trying to obtain this license since last year, but has faced resistance. The reason? Environmental concerns.
Ibama has been pointing out risks to the environment, in addition to specific obligations, such as a new license for the Oiapoque Municipal Airport, in Amapá, which has also become a requirement in the process. However, as reported by Attorney General of the Union (AGU), this obstacle was considered unfounded.
Despite the challenges, There are signs that the state-owned company is close to a turnaround. In addition to the support of government wings and Congress, Petrobras reviewed the Fauna Protection Plan (PPAF) and emergency plans, two points that Ibama had considered critical for approval in May 2023.
What is the Equatorial Margin?
A Equatorial Margin é one of Petrobras' greatest hopes to guarantee Brazil's energy future. This region covers the entire coastal strip to the north of the country, starting in Guyana and extending to Rio Grande do Norte.
Divided into five sedimentary basins, the Equatorial Margin is seen as a new frontier for oil extraction. The main basins that make up this region are:
- mouth of amazon: in the states of Amapá and Pará;
- Pará-Maranhao: in the states of Pará and Maranhão;
- Barreirinhas: located in Maranhão;
- Ceará: covering Piauí and Ceará;
- potiguar: in the state of Rio Grande do Norte.
And on mouth of amazon that Petrobras places its greatest expectations on. The block where it wants to drill is located 500 km from the mouth of the Amazon River and more than 170 km from the coast of Amapá, away from sensitive areas rich in biodiversity, which could reduce the environmental impact.
what is at stake?
Petrobras' estimate is promising: the exploration block on the Equatorial Margin could add 5,6 billion barrels of oil to Brazilian reserves, which currently total 14,8 billion barrels. This jump would represent a 37% growth in the country's reserves.
To give you an idea of the potential, Guyana, which borders the Equatorial Margin, has already discovered the equivalent of 75% of Brazilian reserves in its territory.
This oil could be what Petrobras needs to maintain its production level from the 2030s onwards, when pre-salt reserves, one of the main sources of extraction in Brazil, will begin to decline.
The world will still depend on oil until 2050, according to projections from global studies, and the Equatorial Margin can guarantee this energy security from Brazil until then.
The challenges for release
For this dream to become a reality, Petrobras needs to overcome one last obstacle: the environmental license.
Ibama requires that the state-owned company carry out a pre-operational test to check its response capacity to oil leaks.
Approval of this test will allow the company to drill an exploratory well, which is essential for assessing the real potential of oil reserves in the region.
With the license in hand, Petrobras would be ready to begin exploration immediately. As reported by Chambriard, the company has already made the necessary preparations and is only waiting for approval from Ibama to begin work.
The strategic importance of the Equatorial Margin
The Equatorial Margin is seen as one of the Petrobras' main bets to sustain its production in the future.
With the transition to a green economy on the agenda globally, the exploration of new oil fields needs to be done responsibly.
However, until 2050, the world will continue to depend on traditional energy sources, such as oil, and the Equatorial Margin offers Brazil a competitive advantage.
The decision on the license should be made by the end of 2024. If approved, Petrobras will begin what could be one of the largest oil exploration operations in the country, with the potential to place Brazil at the top of the global reserves ranking.
Do you believe that exploration of the Equatorial Margin should move forward, despite the environmental challenges, to guarantee Brazil's energy security until 2050?
