Brazil held a high-profile auction on Tuesday for several land and offshore oil blocks near the Amazon River, aiming to boost production in largely untapped regions despite strong opposition from environmental and Indigenous groups. The auction occurred just months before Brazil is set to host the United Nations’ first climate talks focused on the Amazon.
Protesters gathered outside the event venue, warning of the environmental and social risks posed by expanded oil drilling in one of the world’s most sensitive ecosystems and home to numerous Indigenous communities.
The auction, conducted by Brazil’s National Oil Agency (ANP), took place at a luxury hotel in Rio de Janeiro. Of the 172 oil blocks offered for sale, most are in areas without existing production, including 47 offshore sites near the Amazon River’s mouth and two inland locations close to Indigenous territories within the Amazon rainforest.
Nineteen offshore blocks were awarded to major oil companies such as Chevron, ExxonMobil, Petrobras, and China National Petroleum Corporation (CNPC). These companies consider the region promising due to its geological similarities to offshore fields in Guyana, which have yielded some of the largest oil discoveries this century.
However, the area presents high environmental risks due to strong ocean currents and its proximity to the Amazon coastline. Under political pressure from President Luiz Inácio Lula da Silva, Brazil’s environmental regulator, IBAMA, approved an emergency plan permitting Petrobras to undertake exploratory drilling near the river’s mouth—a critical final step in securing an environmental license.
“This auction is deeply concerning and irresponsible, given that environmental licensing has not yet been granted for these blocks,” said Nicole Oliveira, executive director of Arayara, an environmental NGO that sought to halt the auction through the courts. “We will continue legal efforts to prevent these contracts from moving forward.”
The auction concluded with 34 blocks awarded, generating a record $180 million in signing bonuses—one-time payments made by winning bidders. The highest premium, nearly a 3,000% markup, was paid for a block near the Amazon’s mouth.
Outside the venue, about 200 demonstrators, including Indigenous leaders and environmentalists, peacefully protested. “We came to Rio to reject this auction,” said Giovane Tapura, a leader of the Manoki tribe. “We were not consulted, and no studies have been done on the impacts of drilling on our communities.”
In an opening statement, the National Oil Agency framed the auction as part of Brazil’s energy diversification strategy to transition towards a low-carbon economy. The agency emphasized that contracts include obligations to reduce carbon intensity and invest in energy transition projects.
Brazil’s crude oil production has risen steadily and became the nation’s top export last year, surpassing soybeans. The government aims to maintain and expand production beyond 2030, anticipating declines from current oil fields. Meanwhile, Brazil generates most of its electricity from hydropower and other renewable sources.
The upcoming UN climate talks will be held in Belém, a city near the Amazon River delta.
Critics argue the auction contradicts President Lula’s environmental rhetoric. Claudio Angelo, head of international policy at Climate Observatory—a coalition of over 130 environmental and academic groups—warned the government risks damaging both its international credibility and global climate efforts.
“The science is unequivocal: fossil fuel expansion must stop worldwide,” Angelo said. “Brazil is jeopardizing everyone’s future by continuing to promote fossil fuel growth at this critical moment.”
