Brazil: Lula advocates oil exploration despite criticism

Brazilian President Lula defends offshore oil exploration near the mouth of the Amazon, despite opposition from environmentalists and his own Environment Minister.

Share:

Exploration pétrolière Amazonie

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Brazilian President Luiz Inacio Lula da Silva recently declared that offshore oil exploration near the mouth of the Amazon represents an opportunity to stimulate Brazil’s economic growth. The announcement, made at a meeting in Rio de Janeiro with Saudi Arabian investors, sparked off considerable controversy. Lula stressed that all activities must be legal and environmentally friendly, but insisted that Brazil cannot afford to neglect this opportunity for economic development. Lula has been criticized by many environmentalists for his stance, especially as his Environment Minister, Marina Silva, is firmly opposed to the project. Ibama(Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renováveis) already refused last year to issue a license to Petrobras, Brazil’s state-owned oil company, for exploration in this region, due to the lack of adequate studies.

Internal conflict and international pressure

The new president of Petrobras, Magda Chambriard, took office last month and has expressed her desire to accelerate exploration of new reserves, including in the controversial region near the mouth of the Amazon. This position has heightened tensions within the Brazilian government. Chambriard is determined to explore new energy sources to meet growing demand, despite environmental concerns. Environmentalists find it paradoxical that Lula should defend fossil fuel exploration when he has made the fight against climate change a priority, notably by halving deforestation in the Amazon last year. This region is crucial to the global ecological balance, and the contradiction between Lula’s environmental objectives and his economic initiatives raises questions about the coherence of his policies.

COP30: A Test of Truth for Brazil

Next year, Brazil will host the COP30 (Conference of the Parties) in Belém, an emblematic Amazonian city. This international event will be crucial in assessing global efforts to combat global warming. Lula reiterated that global cooperation is essential to avoid catastrophic levels of climate change, citing the recent devastating floods in southern Brazil as an example of the tangible impacts of the climate crisis. COP30 in Belém could prove to be a litmus test for Brazil’s credibility on the international environmental policy scene. Lula will have to balance the country’s economic development needs with his commitment to environmental protection. The pressure is on to demonstrate that Brazil can both exploit its natural resources responsibly and play a leading role in the fight against climate change. The opposition of Marina Silva and other environmentalists shows the scale of the challenge facing Lula. The final decision on offshore oil exploration could have lasting repercussions not only for the Amazon ecosystem, but also for Brazil’s position as a world leader in the fight against global warming.
Lula’s energy policy and its impact on the environment will remain at the heart of national and international debates, particularly in the run-up to COP30. Brazil is at a crucial crossroads where it must strike a balance between economic development and environmental preservation to ensure a sustainable future.

Caspian Pipeline Consortium suspended loading and intake operations due to a storm and full storage capacity.
Frontera Energy has signed a crude supply deal worth up to $120mn with Chevron Products Company, including an initial $80mn prepayment and an option for additional funding.
Amplify Energy has completed the sale of its Oklahoma assets for $92.5mn, as part of its strategy to streamline its portfolio and optimise its financial structure.
State-owned Nigerian company NNPC has opened a bidding process to sell stakes in oil and gas assets as part of a portfolio restructuring strategy.
As offshore projects expand, Caribbean nations are investing in shore bases and specialised ports to support oil and gas operations at sea.
Turkish, Hungarian and Polish national companies confirm participation in Tripoli's summit as Libya revives upstream investments and broadens licensing opportunities.
Oil workers’ union FUP announced its intention to approve Petrobras’ latest proposal, paving the way to end a week-long national strike with no impact on production.
Subsea7 has secured a subsea installation contract from LLOG for the Buckskin South project, scheduled for execution between 2026 and 2027, strengthening its position in the Gulf of Mexico and boosting its order book visibility.
Global crude oil production is expected to rise by 0.8 million barrels per day in 2026, with Brazil, Guyana and Argentina contributing 50% of the projected increase.
Woodbridge Ventures II Inc. signs definitive agreement with Greenflame Resources for a transformative merger, alongside a concurrent financing of up to $10mn.
Interceptions of ships linked to Venezuelan oil are increasing, pushing shipowners to suspend operations as PDVSA struggles to recover from a cyberattack that disrupted its logistical systems.
Harbour Energy acquires US offshore operator LLOG for $3.2bn, adding 271 million barrels in reserves and establishing a fifth operational hub in the Gulf of Mexico.
The agreement signed with Afreximbank marks a strategic shift for Heirs Energies, aiming to scale up its exploration and production operations on Nigeria's OML 17 oil block.
Oritsemeyiwa Eyesan’s appointment as head of Nigeria’s oil regulator marks a strategic shift as the country targets $10bn in upstream investment through regulatory reform and transparent licensing.
Baghdad states that all international companies operating in Kurdistan’s oil fields must transfer their production to state marketer SOMO, under the agreement signed with Erbil in September.
Chinese oil group CNOOC continues its expansion strategy with a new production start-up in the Pearl River Basin, marking its ninth offshore launch in 2025.
A train carrying over 1,200 tonnes of gasoline produced in Azerbaijan entered Armenia on December 19, marking the first commercial operation since recent conflicts, with concrete implications for regional transit.
Subsea 7 has secured a new extension of its frame agreement with Equinor for subsea inspection, maintenance and repair services through 2027, deploying the Seven Viking vessel on the Norwegian Continental Shelf.
Caracas says Iran has offered reinforced cooperation after the interception of two ships carrying Venezuelan crude, amid escalating tensions with the United States.
US authorities intercepted a second oil tanker carrying Venezuelan crude, escalating pressure on Caracas amid accusations of trafficking and tensions over sanctioned oil exports.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.