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3mo ago

Brazil Auctions Amazon River-Mouth Oil Blocks to Major Energy Firms

The sale's $180 million in signing bonuses has prompted protests from environmentalists, Indigenous communities over threats to fragile ecosystems ahead of COP30 in the Amazon.

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ExxonMobil Executive Camila Borges places her bid to explore the Amazon basin during an oil blocks auction by Brazil's Oil and Gas Regulatory Agency (ANP) in Rio de Janeiro, on June 17, 2025
Indigenous people take part in a demonstration in front of the hotel in Rio de Janeiro where an oil blocks auction is taking place

Overview

  • On June 17, Brazil's National Oil Agency awarded exploration rights to 19 offshore blocks at the Amazon River mouth to two consortia: one led by Petrobras with ExxonMobil, and another by Chevron with CNPC.
  • The auction raised $153 million in bid payments; signing bonuses reached a record $180 million with the highest premium paid for a block near the river's mouth.
  • Critics including Greenpeace Brazil, Climate Observatory representatives and Indigenous leaders warned drilling in the Equatorial Margin risks damage to mangroves, coral reefs and ancestral fishing grounds.
  • President Luiz Inácio Lula da Silva defended the sale as crucial to financing Brazil’s energy transition and safeguarding the Amazon, arguing revenues will support forest preservation.
  • Environmentalists and Indigenous groups have filed lawsuits demanding comprehensive impact studies and formal consultations before any exploration commences.