Petrobras has has decided to appeal the decision by environmental agency Ibama to block it from drilling a well in the Foz do Amazonas sedimentary basin at the mouth of the Amazon River.

The environmental agency turned down the company’s proposal to drill exploration blocks in the FZA-M-59 block, located in deep water in Amapá.

The drilling plan sparked vehement resistance from environmental activists, who warned of the possible harm it would cause.

Petrobras noted that it fulfilled all the conditions set forth in the reference legislation for the bidding process for block FZA-M-059.

The state-owned energy behemoth continued by saying that the project met all of Ibama’s technical specifications.

In a press statement the company said: “The emergency response structure proposed by the company is the largest in the country. Even so, Petrobras is ready to meet any additional demands that may remain.”

Block FZA-M-59 was acquired in the 11th ANP Bidding Round held in May 2013.

Following the recommendation of the working group GT PEG, the granting process for the blocks offered was subsidised.

The working group, which included Ibama, ICMBIO and MMA, was of the view that the block was suitable to be offered and licensed.

Hence, Petrobras concluded that the “challenges signalled were all technically surmountable. 

“Refusal on the grounds of environmental unfeasibility may result in litigation and fines, in addition to compromising the assessment of the region’s potential, as well as energy security and the country’s own fair and safe energy transition,” the company said.