The auction organized by Brazil’s National Petroleum Agency (ANP), the regulatory authority of the South American Portuguese-speaking country’s oil and gas sector, involved 172 fields for oil exploration off the Brazilian coast, with participation from over 40 companies in the sector.
Ten areas at the mouth of the Amazon River were acquired by the Brazilian state oil company Petrobras in a joint venture with ExxonMobil.
The other nine concessions were awarded to a consortium comprising Chevron and the state-owned China National Petroleum Corporation (CNPC).
The two consortia paid a total of 844 million reais (approximately 133 million euros) for the rights to explore areas covering 16,200 square kilometers.
No offers were made for the other areas at the mouth of the Amazon River that were made available in this auction by the Brazilian government.
The auction was held amid significant controversy, as environmental groups argue that the concessions in this region, although in deep-water offshore blocks, are located in a vulnerable area near the Amazon.
The controversy stems from the auctioned areas at the mouth of the Amazon River, where oil exploration is criticized due to its potential impact on the region, regarded as “extremely sensitive” because it hosts rich flora and fauna, including coral reefs and endangered species.
Prior to the auction, there was a protest in Rio de Janeiro by indigenous people, environmentalists, and ecologists, claiming that, in addition to risking an area on the Amazon coast, the project contradicts Brazil’s decarbonization proposals as the host of the COP30 Climate Summit, scheduled for November in the Amazonian city of Belém.
Besides the criticisms, the auction of blocks near the mouth of the Amazon has already prompted a legal action demanding its suspension.
Last Thursday, Brazil’s Federal Public Prosecutor’s Office requested the suspension of the auction until “a series of measures outlined in socio-environmental legislation” are met to prevent the potential exploration of the Amazon River mouth regions from causing an environmental disaster.
The Brazilian MPF alleged that oil exploration in this sensitive region violates several legal standards and some of Brazil’s climate commitments, contradicting global decarbonization efforts.
The oversight body added that it would seek the cancellation of the bidding and related contracts if the ANP proceeds with the auction without adhering to the recommended measures.
