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Petrobras (NYSE:PBR) received a permit Monday from Brazil’s Ibama environmental agency to conduct exploratory drilling in the Potiguar Basin, one of five regions in the Equatorial Margin, the area near the mouth of the Amazon River that is considered one of Brazil’s last promising oil exploration opportunities.
Petrobras (PBR) believes the region may hold reserves similar to the multibillion-barrel discoveries that an Exxon-led consortium is developing to the north off the coast of Guyana.
Studies show that a single oil block in the Equatorial Margin could contain more than 5.6B barrels of oil, Brazil’s Mines and Energy Minister Alexandre Silveira said.
Once the area’s exploration potential is confirmed, “there will be more social and economic development in the region and more resources to finance health and education,” Silveira said.
Petrobras (PBR) said it plans to begin drilling in the area next month after a rig arrives at the location, surveying the area to assess the economic viability and extent of the oil discovery.
Separately, Petrobras (PBR) said Monday it has made no decisions on the possibility of repurchasing refineries the company has sold in recent years.
Silveira said last week that Petrobras (PBR) should negotiate the purchase of the refineries to ensure Brazil’s fuel supply and better prices for consumers.