Brazilian oil as a contradiction in Lula’s climate goals

While Ecuador halts oil production in the Amazon, Brazil under the Lula government invests massively in oil exploration near the mouth of the Amazon. The "FZA-M-59" exploration project is being criticized for its lack of environmental consistency, despite its climate commitments.

Share:

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

At almost the same time as Ecuador announced this week that it would halt oil production at an iconic field in the Amazon, Brazil was boasting of massive hydrocarbon investments, with plans to explore for oil near the mouth of the Amazon.

Brazil’s oil paradox: Lula and the environmental challenges of energy pressure

A paradox for the government of left-wing President Luiz Inacio Lula da Silva, which likes to present itself as a champion of the fight against climate change, but has been criticized for its reluctance to abandon fossil fuels.

“We hope that the Brazilian government will follow Ecuador’s example,” said Marcio Astrini, of the NGO group Observatoire du climat, in a statement.

This strategic issue was also discussed at a summit of Amazonian countries two weeks ago, in the Brazilian city of Belem, but Lula turned a deaf ear when his Colombian counterpart Gustavo Petro called for a halt to all oil exploration in the region. On the contrary, a few hours after the announcement on Monday of the result of the “historic” referendum in Ecuador to preserve the Yasuni reserve, the presidency of Brazil, home to 60% of the Amazon rainforest, announced a 335 billion reais (around 64 billion euros) investment plan in the hydrocarbons sector. The plan calls for state-owned oil company Petrobras to explore an offshore deposit, block “FZA-M-59”, located not far from the estuary where the Amazon River flows into the Atlantic.

This project has exposed differences within the Lula government. The Ibama environmental protection agency refused to grant Petrobras an exploration license on the grounds that the company had not submitted the necessary studies. But on Tuesday, the Union’s General Counsel’s office, which defends the government’s interests, issued a favorable opinion on the project, considering that the studies were “not indispensable”. Environment Minister Marina Silva, for her part, strongly called for compliance with the “technical” criteria imposed by Ibama.

Black gold “dream” in the Amazon: the Brazilian administration’s oil exploration on the Guyana line despite Amazon fragility

Returning to power in January after ruling from 2003 to 2010, 77-year-old Lula pledged to make preserving the Amazon a priority, following a surge in deforestation under the presidency of his far-right predecessor Jair Bolsonaro. But the former lathe-mill operator recently declared that the people of northern Brazil could “continue to dream” of black gold, despite Ibama’s objections.

Guyana, a small Amazonian country on Brazil’s northern border, has extracted an enormous amount from neighboring waters since 2019, to the point of being dubbed “the Dubai of South America”. The “FZA-M-59” exploration project has drawn fierce criticism from environmental organizations, indigenous leaders and the inhabitants of Marajo, an island in the heart of the Amazon river mouth. Critics cite the risk of catastrophic impact on this mangrove region with its fragile biodiversity.

“The majority of the planet is suffering the consequences of some people turning nature into a source of profit,” says Naraguassu, a 60-year-old activist from the Caruana indigenous people, who hold sacred the site where the Amazon meets the Atlantic. “Temperatures keep rising, the Earth is telling us something is wrong,” she tells AFP.

For Luis Barbosa, of the Marajo Observatory, a local NGO, it is the “very existence” of his island that is threatened by rising water levels, linked among other things, according to him, “to the continued use of fossil fuels”.

At the crossroads of energy: Oil exploration in the Amazon to launch a “sustainable energy transition

Petrobras, for its part, believes that this project “will open up a new energy frontier”, with a view to a “sustainable energy transition”. The company points out that the “FZA-M-59” block is more than 500 kilometers from the mouth of the Amazon, and promises a “robust” protocol to contain any leaks. But Brazil, the world’s eighth-largest oil producer, is already self-sufficient in this hydrocarbon, explains Climate Observatory specialist Suely Araujo, who headed Ibama from 2016 to 2019.

“We’re living through a climate crisis, so there’s no reason to persist in wanting to explore for oil in sensitive areas,” she argues.

It was under his leadership that Ibama refused a license to the French group Total to drill five offshore blocks in the same region in 2018. Ms Araujo welcomes the Brazilian president’s ambitions in the fight against climate change, but deplores the fact that he is not ready to abandon fossil fuels. For her, “the great contradiction of the Lula government is oil”.

The Ugandan government aims to authorise its national oil company to borrow $2 billion from Vitol to fund strategic projects, combining investments in oil infrastructure with support for national logistics needs.
British company BP appoints Meg O'Neill as CEO to lead its strategic refocus on fossil fuels, following the abandonment of its climate ambitions and the early departure of Murray Auchincloss.
The Venezuelan national oil company has confirmed the continuity of its crude exports, as the United States enforces a maritime blockade targeting sanctioned vessels operating around the country.
Baker Hughes will supply advanced artificial lift systems to Kuwait Oil Company to enhance production through integrated digital technologies.
The United States has implemented a full blockade on sanctioned tankers linked to Venezuela, escalating restrictions on the South American country's oil flows.
Deliveries of energy petroleum products fell by 4.5% in November, driven down by a sharp decline in diesel, while jet fuel continues its growth beyond pre-pandemic levels.
ReconAfrica is finalising preparations to test the Kavango West 1X well in Namibia, while expanding its portfolio in Angola and Gabon to strengthen its presence in sub-Saharan Africa.
Shell has reopened a divestment process for its 37.5% stake in Germany's PCK Schwedt refinery, reviving negotiations disrupted by the Russia-Ukraine conflict and Western sanctions.
Aliko Dangote accuses Nigeria’s oil regulator of threatening local refineries by enabling refined fuel imports, while calling for a corruption probe against its director.
Shell Offshore approves a strategic investment to extend the life of the Kaikias field through a waterflood operation, with first injection planned for 2028 from the Ursa platform.
Oil prices drop amid progress in Ukraine talks and expectations of oversupply, pushing West Texas Intermediate below $55 for the first time in nearly five years.
The US energy group plans to allocate $1.3bn to growth and $1.1bn to asset maintenance, with a specific focus on natural gas liquids and refining projects.
Venezuelan state oil group PDVSA claims it was targeted by a cyberattack attributed to foreign interests, with no impact on main operations, amid rising tensions with the United States.
BUTEC has finalised the financing of a 50 MW emergency power project in Burkina Faso, structured under a BOOT contract and backed by Banque Centrale Populaire Group.
BW Energy has signed a long-term lease agreement with Minsheng Financial Leasing for its Maromba B platform, covering $274mn of the project’s CAPEX, with no payments due before first oil.
Shell will restart offshore exploration on Namibia’s PEL 39 block in April 2026 with a five-well drilling programme targeting previously discovered zones, despite a recent $400mn impairment.
Iranian authorities intercepted a vessel suspected of fuel smuggling off the coast of the Gulf of Oman, with 18 South Asian crew members on board, according to official sources.
Harbour Energy will acquire Waldorf Energy Partners’ North Sea assets for $170mn, increasing its stakes in the Catcher and Kraken fields, while Capricorn Energy settles part of its claims.
The Big Beautiful Gulf 1 sale attracted more than $300mn in investments, with a focused strategy led by BP, Chevron and Woodside on high-yield blocks.
The United States intercepted an oil tanker loaded with Venezuelan crude and imposed new sanctions on maritime entities, increasing pressure on Nicolas Maduro’s regime and its commercial networks in the Caribbean.

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.