After a coronavirus-related postponement, Brazil’s National Petroleum Agency (ANP) resumed proceedings for the 17th round of bidding for oil and gas leases in the country, scheduled to take place on October 7.
For several municipalities and states, the bidding process represents hope of a brighter financial future. When the oil fields are sold off, local governments will receive royalties for the minerals extracted therein — and many of these “oil and gas cities” find themselves in situations of extreme fiscal difficulty, with eye-watering debts blocking spending and putting public servants’ salaries at risk.
But the bidding process poses a threat to a number of ecological reserves around Brazil’s coast. Environmentalists are most concerned about oil fields in the Potiguar and Pelotas basins, which will be included in October’s auction. The 17th round contains 92 blocks of oil reserves in the Potiguar, Campos, Santos, and Pelotas maritime basins, adding...
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