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Brazil's Lula to meet with agency on Petrobras' bid to drill near mouth of Amazon river

SAO PAULO (Reuters) -Brazilian President Luiz Inacio Lula da Silva will meet with environmental agency Ibama this week or the next to discuss Petrobras' bid to drill for oil near the mouth of the Amazon (NASDAQ: AMZN ) river, he told a local radio station on Wednesday.

Lula, who has defended state-run Petrobras' bid to explore the region, said during the interview that "Ibama is a government agency that seems to be against the government," in an escalation of recent criticism against the regulator.

It was unclear if the meeting would lead to a final decision on whether Petrobras would be allowed to drill in the environmentally sensitive area.

In May 2023, Ibama denied Petrobras' request for an offshore drilling license for the Foz do Amazonas area off the coast of Amapa state, citing environmental concerns. The oil company appealed soon after, but a final Ibama decision is pending.

Union Ascema, which represents workers from federal environmental agencies, expressed concern over Lula's statements, adding that Ibama's decisions are based on "technical, scientific and legal criteria."

Ibama did not immediately reply to a request for comment. Its president, Rodrigo Agostinho, told newspaper O Globo that he saw the political pressure as "normal."

Lula's remarks come after talks with Davi Alcolumbre, the newly sworn-in president of Brazil's Senate and a vehement defender of oil exploration in his home state of Amapa.

The Equatorial Margin at the northern end of the area is Brazil's most promising oil frontier, sharing geology with nearby Guyana, where Exxon Mobil (NYSE: XOM ) is developing huge fields.

Brazil's Lula to meet with agency on Petrobras' bid to drill near mouth of Amazon river

While the region holds great potential for Petrobras, the firm has faced stiff resistance from local Indigenous communities and federal prosecutors related to its bid to drill there.

Last month, Petrobras' director of exploration and production, Sylvia dos Anjos, said she expected the firm to receive approval from Ibama in the first quarter of this year.

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