Petrobras confirms oil discovery off Amazon coast as Lula touts economic potential

Published Aug 18, 05:30 PM UTC

Brazilian state oil company Petrobras has confirmed an oil discovery in the Foz do Amazonas basin, approximately 175 km off the coast of Amapá state. The find at the Morpho exploration well, drilled in ultra-deep water since October 2025, is a key step in Petrobras' push into the Equatorial Margin, a region estimated to hold up to 10 billion barrels of oil worth about $720 billion. President Luiz Inácio Lula da Silva visited the drilling vessel and called the discovery a 'passport to the country's future,' while arguing it does not conflict with Brazil's energy transition goals. The announcement comes as Lula announced his fourth presidential candidacy. Petrobras has invested $300 million in the well, with half spent on environmental protection. Environmental and Indigenous groups have sued to halt exploration, citing inadequate consultation, spill risks, and climate impacts. Petrobras plans to drill three more wells in the block and six others in the region, pending environmental licenses from IBAMA.