Brazil and its high-speed race to extract as much oil as possible

 


Petrobras announced three weeks ago that it had found an oil deposit in ultra-deep waters in the Potiguar Basin, on the Brazilian equatorial margin.

This is the second discovery made in 2024 in the region, a target of conflict between the government's energy and environmental sectors. It is the first time that the state-owned company has found deposits in the region similar to those of the giant discoveries in Guyana and Suriname, which should increase the pressure for the release of environmental licenses in the area.

The well responsible for the second discovery, called Anhangá, was drilled near the border between Rio Grande do Norte and Ceará, 190 kilometers from Fortaleza. It is located 24 kilometers from the first discovery, called Pitu Oeste. The discovery is unprecedented in the region as it was made in a type of reservoir called turbidite. This is what is expected on the equatorial margin.

The result strengthens the evidence that gigantic reserves, like those of neighboring countries, can be found in basins such as Barreirinhas and Foz do Amazonas, for which Petrobras has already heard criticism from Ibama (Institute of Environment and Renewable Natural Resources).

Petrobras emphasized in a statement that the discoveries still need to be evaluated to prove their economic viability. And it once again defended the search for oil in the region, which has also been the target of criticism from environmental organizations due to commitments to reduce the use of fossil fuels. The exploration activities in the equatorial margin represent another step in Petrobras' commitment to replenish reserves and develop new exploration frontiers to ensure the satisfaction of global energy needs during the energy transition.

Petrobras claims that it has a track record of almost 3,000 wells drilled in deep or ultra-deep waters with no environmental impact, which, in the words of a press release, allows it to "open new frontiers and negotiate its operations in the equatorial margin with total security". It should be recalled that the environmental license for the two wells in the Potiguar Basin was granted by Ibama at the end of 2023, which led Petrobras to revise its plans and send the drilling rig to be used in Block 59 of the Foz do Amazonas Basin, on the coast, to the region. However, the company still hopes to review Ibama's position on this block, which is considered by the oil sector as an important test to evaluate whether Brazil has the potential to find gigantic reserves in the region, like those found in neighboring countries.

The exploration success in Guyana and Suriname confirms the importance of Petrobras continuing its campaign in the Brazilian equatorial margin basins, as foreseen in its 2024-2028 strategic plan. The plan earmarks $3.1 billion for equatorial margin exploration, with 16 wells planned in the region.

All of this takes place in the midst of a crisis for the president of Petrobras, who is in danger of being fired in his fight against the Ministry of Mines and Energy and Casa Civil. It is rumored that the president of the BNDES (National Bank for Economic and Social Development), Aloizio Mercadante, will end up presiding over the state-owned company, but Lula has not made the final decision.

In any case, Brazil has embarked on a key career as an oil power. There is no turning back, and there are no partisan divisions in this regard, as there may be in other sectors. The goal is to take advantage of the last breath of the energy cycle, which is essentially based on hydrocarbons, on a global scale, and to extract the maximum amount of income.



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