Oil drilling project near mouth of Amazon River rejected by Brazil's environmental regulator
Brazil’s environmental regulator has refused to grant a license for a controversial offshore oil drilling project near the mouth of the Amazon River, prompting celebration from environmentalists who had warned of its potential impact
RIO DE JANEIRO (AP) — Brazil’s environmental regulator has rejected a license for a controversial offshore oil drilling project near the mouth of the Amazon River that drew strong opposition from activists who warned of its potential for damaging the area.
The agency’s president, Rodrigo Agostinho, highlighted environmental concerns in announcing the decision Wednesday evening to turn down the state-run oil company Petrobras' request to drill the FZA-M-59 block. He cited “a group of technical inconsistencies" in the company's application.
With Brazil's existing production set to peak in coming years, Petrobras has sought to secure more reserves off Brazil’s northern coast. The company earmarked almost half its five-year, $6 billion exploration budget for the area.
CEO Jean Paul Prates had said that the first well would be temporary and that the company has never recorded a leak in offshore drilling. The company failed to convince the environmental agency.
