Strike at Brazilian environmental agency affects Petrobras’ drilling application for the equatorial rim | WSAU News/Talk 550 AM · 99.9 FM

By Rodrigo Viga Gaier

RIO DE JANEIRO (Reuters) – The ongoing strike at Brazil’s environmental agency Ibama is affecting the review of Petrobras’ request to drill a well in the equatorial rim, an Ibama official told Reuters on Thursday. Itagyba Neto, who is in charge of licensing the agency’s marine and coastal projects, added that Petrobras had still not provided the agency with key details about what impact the drilling could have on indigenous communities in the area.

“There is no deadline for (the regulator’s) opinion,” Neto told Reuters on the sidelines of an event in Rio de Janeiro, adding that without the strike a decision would “probably” have already been made.

Petrobras wanted to explore the northernmost part of the equatorial rim near the mouth of the Amazon, but the application was rejected by Ibama in May last year due to concerns about impacts on indigenous communities and the environment.

Since then, the state-owned company has been waiting for the agency’s decision on an appeal.

The region is considered the most promising area for oil exploration for Petrobras because it has similar geology to nearby Guyana, where Exxon Mobil is developing huge fields.

(Reporting by Rodrigo Viga Gaier; Writing by Fabio Teixeira; Editing by Kylie Madry)