By Brazil Stock Guide – Petrobras has received an operating license from Brazil’s environmental agency Ibama to drill an exploratory well in block FZA-M-059, located in deep waters off the coast of Amapá — about 500 kilometers from the mouth of the Amazon River and 175 kilometers offshore. The rig is already in position, and drilling is set to begin immediately, with operations expected to last around five months. The goal is to determine whether commercially viable oil and gas reserves exist in the area.
The authorization concludes nearly five years of regulatory back-and-forth over potential environmental risks in the Equatorial Margin, a stretch of deepwater basins running from Amapá to Rio Grande do Norte. The region is seen by the industry as one of the world’s last untapped oil frontiers, with geological similarities to Guyana and Suriname — where major discoveries have been made in recent years.
“The conclusion of this process is an achievement for Brazilian society,” said Petrobras CEO Magda Chambriard, noting that the licensing process confirms the strength of the company’s environmental safeguards. She added that Petrobras will operate “with safety, responsibility and technical excellence,” and hopes to prove the existence of significant reserves in the area.
Ibama granted the permit after Petrobras met all environmental requirements and successfully completed a live Pre-Operational Assessment (APO) in August, which demonstrated its emergency response capacity. The company views the Equatorial Margin as key to ensuring Brazil’s energy security and funding a just energy transition, should the exploratory results confirm its potential.
Read more: What comes after the Equatorial Margin
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