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Brazilian Federal Prosecutor's Office requests suspension of oil auction in the Equatorial Margin.

Prosecutors want to prevent actions by the National Petroleum Agency (ANP) until traditional communities are consulted and IBAMA (Brazilian Institute of Environment and Renewable Natural Resources) is included in the process.

A drillship working for Petrobras, which may be sent for drilling in the Equatorial Margin, is seen in Guanabara Bay, Rio de Janeiro (Photo: REUTERS/Pilar Olivares)

247 - The Federal Public Prosecutor's Office of Pará (MPF) has requested the Federal Court to immediately halt the subsequent stages of the auction of oil and gas blocks from the 5th Permanent Concession Offer (OPC), organized last week by the National Agency of Petroleum, Natural Gas and Biofuels (ANP). This information was released in an official statement from the agency.

According to Reuters, the request submitted on Monday (24) calls for a ban on the issuance of any administrative act formalizing the results of the round until requirements set out in socio-environmental legislation are met. These measures mainly involve blocks located on the Equatorial Margin — a region considered environmentally sensitive and inhabited by traditional communities. The official approval of the results is scheduled for September 1st.

According to the Federal Public Prosecutor's Office (MPF), a public civil action had already been filed on the 12th against the Federal Government and the National Agency of Petroleum, Natural Gas and Biofuels (ANP), requesting that the auction be suspended preventively until compliance with current legislation. Despite the request, the auction was held on the 17th, before the Court ruled on the case.

In the auction, four major oil companies — Petrobras, ExxonMobil, Chevron, and CNPC — won 19 of the 47 blocks offered in the Equatorial Margin. The signing bonus for these blocks totaled R$ 844 million, an amount that will be collected by the government.

Among the main points demanded by prosecutors in the new request to the court are the carrying out of Prior, Free and Informed Consultation (PFIC) with potentially affected peoples and communities; the inclusion of the Brazilian Institute of Environment and Renewable Natural Resources (Ibama) as part of the judicial process; the prohibition of initiating any environmental licensing process for the blocks already auctioned; and the suspension of the inclusion of blocks in the Equatorial Margin in new permanent offers, at least until there is a final court decision.

In addition to the Equatorial Margin, the auction included areas in other sedimentary basins in the country. In total, 34 of the 172 available exploration blocks were acquired by different companies, with a final revenue of R$ 989,2 million.

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