Brazil’s environmental agency Ibama authorized state-run oil company Petrobras (BVMF: PETR4) to drill three new exploratory wells in the Foz do Amazonas basin, according to a document seen by Reuters on Friday.
The new wells are key to determining whether Petrobras’ recent oil discovery in the environmentally sensitive region off Brazil’s Amazon coast is commercially viable.
The decision, signed on Thursday by Ibama head Jair Schmitt, requires Petrobras to provide the agency with an updated drilling project schedule within 30 days of receiving the license.
(Reporting by Fabio Teixeira; Editing by Gabriel Araujo)
