Brazilian regulatory body Ibama has rejected an environmental impact study presented by the French oil company Total for oil exploration in the Foz do Amazonas Basin.
The French supermajor has five operated blocks in the offshore basin.
However drilling activities had stalled due to the environmental regulator.
And in an order signed on Monday night, Ibama’s president, Suely Araújo, listed pending issues in a technical opinion that prevented the issuance of license and requested complements.
“Oil dispersion modeling, for example, can leave no doubt about the potential impacts on the coral bank and marine biodiversity more broadly,” the president said in the paper.
It also highlights the need for international negotiations related to potential cross-border risks in the licensing of maritime drilling and the interlocution with French Guiana, Suriname, Guyana and Venezuela, as well as Caribbean archipelagos.
“In the face of Ibama having already carried out in this licensing process three repetitions of the application for completing the environmental study, if the entrepreneur does not meet the points demanded by the technical team once again, the licensing process will be filed,” concluded the president of Institute.
The Foz do Amazonas – Marajo Basin is an offshore basin located off the east coast of Brazil.
According to analysts WoodMackenzie, compared to the prolific southern Brazilian basins, the Foz do Amazonas – Marajo Basin has seen minimal activity to date, and so limited success.
However it holds the potential for significant discoveries.
High costs associated with the basin has thus far prevented any major exploration and production.
