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Petrobras, Brazil's largest oil company, faces a $34 million bill as its drillship idles in Foz do Amazonas

Petrobras, the state-run Brazilian oil company, has spent 180 million reais (33.7 million dollars) to keep a drillship in reserve in the Foz Do Amazonas basin. This is while it waits for a regulatory decision on a request for drilling.

According to the Brazilian oil worker's federation FUP, the NS-42 drilling ship arrived at its designated location in August off the coast Amapa state in northern Brazil. Its daily cost is 4 million reais (748,433).

Petrobras used a ship for a simulation of an emergency response in August. The company is seeking a drilling license from the Brazilian environmental agency Ibama in this region. It's ecologically sensitive, and it's also considered the most promising oil frontier by the company.

Ibama stated in September that it had approved the results of the drill but asked Petrobras to make adjustments before making a final determination.

Petrobras source: The 180 million reais cost includes only the rental of the drillship. Personnel costs are excluded.

Petrobras mobilized its largest response structure ever in August, with over 400 personnel, large vessels and aircraft. The simulation was designed to show how Petrobras would respond in an oil spillage that could occur in the environmentally sensitive area.

Petrobras stated in a press release that it expected to receive an environmental license "soon", while Ibama has not given a date for the review of Petrobras recent submissions.

This situation is similar to a previous incident in 2022-2023 when Petrobras had a drilling ship stationed in the same area for several months. The company was waiting on Ibama to approve a simulation drill. This never happened. ($1 = 5.3457 reais) (Reporting by Marta Nogueira in Rio de Janeiro Writing by Fernando Cardoso Editing by Matthew Lewis)

(source: Reuters)