Petrobras: Prates Revealed That, Following Ibama’s Authorization, Oil Commercialization from the Equatorial Margin May Take 5 to 8 Years

Petrobras Is Charting an Ambitious Plan for the Exploration of the Equatorial Margin and the Marketing of Extracted Oil. However, Due to the Complexity of the Involved Stages, The Completion of This Project May Take Five to Eight Years.

The president of Petrobras, Jean Paul Prates, revealed that the marketing of oil from the Equatorial Margin, located in the Amazon River Mouth Basin, will likely only occur after a minimum period of five years following the possible authorization from Ibama (Brazilian Institute of the Environment and Renewable Natural Resources). Prates clarified that this timeline may extend further, as even with drilling approval, it is essential to confirm the existence of oil reserves in the area and subsequently assess the economic feasibility of exploration. Only after these steps would it be feasible to construct a platform to initiate operations.

Jean Paul Prates, The President of Petrobras Deliberated on Timelines and Processes in Oil Exploration in the Amazon River Mouth Basin

During a session held in the Senate Infrastructure Committee, Prates highlighted: “Licensing a well and drilling it does not guarantee that production will start immediately”.

The process requires several careful stages before entering the production phase.

If exploration proves viable, Petrobras must request the renewal of its authorization to market oil from ANP (National Petroleum Agency), and from that point, it will take about three years to set up the production station, as Prates explained.

“We are, therefore, talking about a period of five to eight years for the start of oil production in the area, if we receive the license later this year or early next year”, concluded the company’s president.

Consequently, if Prates’ projections are confirmed, the marketing of oil extracted from this new exploratory frontier could begin between 2028 and 2031.

This would coincide with the end of the decade considered crucial for significant reductions in gas emissions, aimed at mitigating the more severe impacts of climate change.

Political Conflicts and Debate Regarding Oil Exploration in the Equatorial Margin

The president of Petrobras also outlined his vision to transform the Equatorial Margin, located on Brazil’s northern coast, which includes block 59 (subject of a drilling request denied by Ibama this May), into a new frontier for energy production, from both fossil and wind sources, with offshore structures.

“These two approaches will proceed in parallel”, he stated.

“Before this region, the Campos Basin was prioritized for investments. The Equatorial Margin seems to have awaited the arrival of the energy transition. Our goal is to develop the Amapá region with wind and oil energies”, he added.

Oil exploration in the Amazon River Mouth has been a controversial and conflicting issue in the government of Luiz Inácio Lula da Silva (PT).

The debate places the Minister of the Environment, Marina Silva, on one side and the Minister of Mines and Energy, Alexandre Silveira, along with the political core, on the other.

Lula himself has shown inclination for Petrobras to conduct studies to determine the presence of oil in the region.