(Bloomberg) — Brazil’s state-controlled oil company received permission from regulators to perform emergency response drills near the mouth of Amazon River, a crucial step toward winning approval to explore in a region the company has been pushing to access for years.
Petroleo Brasileiro SA is expected to start emergency drills in the Foz do Amazonas basin on Aug. 24, according to Brazil Senator Randolfe Rodrigues, who represents the coastal state of Amapá on the river’s northern bank.
The area in the Atlantic, about 330 miles from the river’s mouth, has long been viewed by Petrobras as the key to its future crude production as output from the nation’s existing oilfields is expected to peak around 2030. Yet environmentalists have adamantly opposed drilling in the region, warning an oil spill could imperil the ecosystem.
Brazil’s environmental regulator, the Institute of Environment and Renewable Natural Resources or Ibama, has been blocking efforts to drill there for more than a decade.
Rodrigues, the Brazilian government leader in the nation’s congress, confirmed the test in a video posted on social media. Brazil Senate chief Davi Alcolumbre also said the test was scheduled.
“This marks a triumph for Amapá and for Brazil — a significant milestone born from the dedication and teamwork of many who champion a sustainable energy future for our nation,” Alcolumbre said in a statement Tuesday.
Ibama confirmed in an emailed statement that officials from the environmental agency met with Petrobras Tuesday and said any news about the licensing process would be made public “at the appropriate time.”
Petrobras’ head of exploration and production, Sylvia Anjos, said on Tuesday the date was scheduled and would be announced by Ibama. The so-called pre-operational assessment is considered the last step before an exploration permit is issued.
The test should take three to four days, and Petrobras is ready to start drilling as soon as the permit is granted, Anjos said.
ExxonMobil’s discovery of billions of barrels further north in Guyana has boosted interest in the Foz do Amazonas, part of a larger area called the Equatorial Margin.
Petrobras has set aside $3 billion to explore in the area as part of its spending plan that runs through 2029 and has already spent more $185 million on the licensing process, Anjos said.
More than 70% of Brazil’s production is currently from an offshore area known as the pre-salt, but Petrobras haven’t made any significant discoveries there in more than a decade.
