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Environmental licensing blocks Petrobras' plans to explore billions of barrels of oil on Brazil's northern coast, fueling debate between government and Ibama
The Equatorial Margin, which extends from Amapá to Rio Grande do Norte, became one of Petrobras' biggest bets for the next decade. This region, considered promising by the state, has geological characteristics similar to neighboring areas which have already revealed vast reserves of oil and natural gas. It is estimated that the Brazilian Equatorial Margin may contain between 20 and 30 billion barrels of oil, which, if confirmed, would place Brazil among the largest oil producers in the world, according to the video on the Poder Urbano channel.
The strategic importance of the equatorial margin
The Equatorial Margin is seen by Petrobras as a strategic exploratory frontier, especially in ultra-deep waters. The state-owned company's strategic plan allocates 49% of its exploration investments to this region until 2027. The discovery of large reserves in nearby countries, such as Guyana, which share the same geological context, reinforces confidence in the feasibility of significant new discoveries on the northern coast of Brazil.
Petrobras' interest increased after ExxonMobil and other international consortia discovered huge oil and gas fields in Guyana, with an estimated potential of 11 billion barrels. This success transformed the economy of the neighboring country, which recorded a impressive 43,5% GDP growth in 2020, in the midst of the global crisis caused by the pandemic. The Guyana model serves as inspiration for Brazil, which can benefit economically if it manages to exploit the resources of the Equatorial Margin.
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The impasse with environmental licensing
Despite expectations, Petrobras faced a significant obstacle to starting work on the Equatorial Margin: the lack of approval from the Brazilian Institute of Environment and Renewable Natural Resources (Ibama). The state-owned company was awaiting the issuance of an environmental license to carry out tests in the Foz do Amazonas Basin, but Ibama denied the request, generating an intense debate within the government.
The environmental agency justified its decision by claiming that more detailed assessments are still needed, such as the Environmental Assessment of Sedimentary Area (AAAS), which identifies the most suitable areas for oil and gas exploration, aiming to minimize environmental impact. The issue also involves the protection of biodiversity in the Amazon region and the impact on local communities.
Division in Government and the Pressure for Exploitation
Ibama's refusal created a clear division in the Brazilian government. On the one hand, the Ministry of the Environment, led by Marina Silva, supports the decision of the environmental agency, defending the need to protect Brazil's natural resources and adopt sustainable development practices. On the other hand, the Ministry of Mines and Energy, under the command of Alexandre Silveira, and Petrobras itself are pushing for exploration, claiming that it can boost the economy of the poorest regions in the North and Northeast of the country.
Economic and social impact
If released, exploration on the Equatorial Margin can profoundly transform the economies of the Northern and Northeastern states. Following the example of Guyana, which saw its GDP per capita increase dramatically since the beginning of oil exploration, the Brazilian regions involved could experience accelerated economic growth, in addition to improvements in the areas of infrastructure, health and education, financed by oil revenues.
However, Brazil also faces the challenge of balancing its global environmental commitments. The country has committed to goal of net zero carbon emissions by 2050, which requires a reduction in investment in fossil fuels. The International Energy Agency (IEA) warns that, in order to achieve this goal, new oil projects should not be started.
