Chevron Acquires Blocks in Brazil's Foz do Amazonas Basin

Exxon Mobil and Chevron on Tuesday took their first steps toward eventually exploring oil in Brazil's Foz do Amazonas basin, scooping up offshore blocks auctioned by the country in the promising but environmentally-sensitive area.

The move marks the first recent endeavor from companies other than Brazil's state-run oil giant Petrobras in the ecologically biodiverse area, triggering backlash from environmentalists who say it will increase the risk of contamination of water sources and ecosystems that both wildlife and Brazilians depend on.

Plans by Chevron partnering with China's CNPC and Exxon with oil giant Petrobras to drill for oil in Foz do Amazonas basin, located off the coast of the Amazon rainforest, are controversial due to the environmental importance of the region and have faced delays in obtaining permits.

Two consortia involving Petrobras and Exxon Mobil secured ten blocks in total, with the Brazilian company acquiring five blocks as operator, while the U.S. giant purchased the other five as operator.

Chevron in a consortium with China's state-owned CNPC acquired a total of nine blocks, with Chevron as operator.

The area, home to vast coral reefs and coastal Indigenous communities, is considered a frontier for oil exploration as it shares geology with nearby Guyana,