Exploration and production activities depend on the agency’s approval, and some companies fear delays in projects awaiting licenses. Part of the state superintendencies began striking on Monday, with expectations that participation will grow next week.

Since January, IBAMA has been conducting a working-to-rule operation, keeping activities at a reduced pace, and complying strictly with current rules and laws. IBAMA is responsible, among other things, for the environmental licensing processes of offshore oil projects. Data from the Brazilian Institute of Petroleum and Gas (IBP) indicate that the country is missing out on producing about 80,000 barrels per day, resulting in a monthly economic loss of $200 million. “The government alone loses approximately $106 million in taxes monthly,” said the IBP.

According to the CEO of Shell Brazil, Cristiano Pinto da Costa, the strike deprives the government of revenues at a time of need. He mentioned that Shell has not yet measured the direct impact of the strike on its operations. Mr. Costa noted that the oil company is concerned about obtaining IBAMA’s approval for the introduction of new wells into production in the Mero field in the Santos Basin, operated with Petrobras.

Petrobras told Valor in a statement that the IBAMA employees’ mobilization could impact the expected extraction curve for this year by 1% to 2% due to delays in issuing licenses and approvals for increased production. Considering the company’s average production in the first quarter of 2.776 million barrels of oil equivalent per day (boe/day), the impact could reach 55,500 boe/day. “The main projects already affected are Mero 2, Marlim Revitalization, BUZ-5, and some complementary projects in the Campos and Santos Basins,” Petrobras said.

Equinor said that the strike could delay license issuance for its projects. The company said it closely monitors the strike and respects the employees’ right to strike.

A market source said that some companies have had offshore projects on hold for months due to the lack of licenses. However, not all companies foresee impacts from the strike, such as Enauta, which does not project any effects from the stoppage.

In addition to IBAMA employees, the movement includes staff from the federal environment body ICMBio, the Ministry of Environment, and the Brazilian Forest Service. IBAMA did not respond to Valor’s inquiries before publication. The strike was prompted when the Ministry of Management and Innovation unilaterally suspended negotiations on June 7. The civil servants are demanding career restructuring and a pay rise.

“This was the trigger for the general strike, with no end date,” said Cleberson Zavaski, director of the National Association of Career Environmental Specialists and Pecma (Ascema Nacional). The MGI said that negotiations have been ongoing since October, progress has been made, and it informed the representatives of the employees that the fiscal impact limit of the proposal has been reached.

A list from Ascema Nacional indicates which projects have been affected by the work-to-rule. Drilling projects from five companies would be impacted: Prio, Petrobras, Petronas, 3R Petroleum, and BW. In oil production, Petrobras will have six processes halted. Equinor, Prio, Trident, Perenco, BW, Enauta, Bravo, and OSB also have affected projects, according to the list. In total, 12 assets are awaiting preliminary licenses, and three are waiting for installation licenses.