Brazil looking to offer more oil and gas blocks beyond its EEZ

Brazil’s mines and energy ministry (MME) reinforced that oil and gas watchdog ANP should carry on with the procedures to include additional exploration blocks located beyond the country’s exclusive economic zone (EEZ) in its open acreage program. 

The blocks in question are in the SS-AUP5 sector of the Santos basin off the country’s southeast coast, adjacent to the pre-salt polygon, where assets deemed strategic are located. 

In a letter sent to the regulator and seen by BNamericas, the MME seeks to clarify concerns related to a bilateral agreement signed by the Brazilian and French governments in March this year. 

Entitled New Brazil-France Strategic Partnership Action Plan, the document includes an item stating that the two countries should advocate the adoption of a precautionary pause in the exploitation of the seabed under the International Seabed Authority (ISA).

Multilateral conventions determine that international waters beyond the 200 nautical mile EEZ can be used for economic activities as long as they do not cause environmental damage.

Brazil submitted a request to extend its continental shelf to the United Nations in 2004, with the aim of asserting its rights up to a limit of 350 nautical miles. Even without the formal approval of the UN, the country considers that it has rights over the continental shelf up to that limit. 

For this reason, the MME's legal consultancy understood that, even if the ISA approves the preventive pause in seabed exploration, Brazil's oil and natural gas exploration activities up to 350 nautical miles will not be affected.

The consultancy also said that several countries, such as Norway, Russia, Australia, Canada and the United Kingdom, have already carried out exploration and production in areas beyond 200 nautical miles before the UN's definitive approval, “creating precedents in this matter.” 

The ANP’s press office told BNamericas that, to date, only one exploration block beyond 200 nautical miles has been contracted in Brazil, namely S-M-1378. Located in the Santos basin, it was acquired by Equinor in the fourth open acreage concession round in 2023.

There are currently two blocks beyond the limit on offer (S-M-1613 and S-M-1617) and one under study, at the stage of obtaining an environmental guideline (S-M-1259). All three are also in the Santos basin. 

The blocks in the SS-AUP5 sector that prompted the study and guidance from the MME will still have to be subject to environmental analysis, the issuing of a joint statement by the MME and the environment and climate ministry, a public hearing and a geo-economic assessment, the ANP said.