Natural gas exploration in the state of Amazonas begins in October

Sept 27, 2109

The governor of Amazonas, Wilson Lima, announced on Thursday (26), the arrival of Eneva Company, which will begin, on October 11, the process of installing equipment for drilling and exploration of natural gas in a area between the municipalities of Silves and Itapiranga, in the Azulão natural gas field.

“The state of Amazonas has 50% of all Brazilian onshore gas reserves. This is an investment of about R$ 1.8 billion.  R$ 700 million will be invested in the state of Roraima, where the company will provide electricity with gas powered plant, and R$1.1 billion will be invested here in the state of Amazonas, ”said the governor.

Wilson Lima also pointed out that in this initial phase, with the installation of the company, 1,000 jobs will be generated in Roraima and another 1,000 jobs in Amazonas.

Considering that the population of Silves is about 9,000 people the expected job creation corresponds to more than 10% of the population. In addition, state and municipal revenues are expected to increase.

“This means increased revenue for the municipalities of Silves and Itapiranga, which will also be entitled to royalties, as well as the state will also be entitled to these royalties and also the collection of ICMS tax,” said the governor, noting that these are actions taken by the Government of Amazonas to internalize the economy and develop new employment and income opportunities for the state’s population.

Azulão Field

The Azulão gas field had been a promise of natural gas production since May 2004. Governor Wilson Lima resumed negotiations and, 15 years later, the activity will become economically viable, with production scheduled to begin in June 2021.

The start of activities in the Azulão field will represent the first gas production in the Amazon Basin, in an area of ​​620,000 km² where no oil or gas has yet been produced.

The governor stressed that Amazonas will be the first state to liquefy natural gas in Brazil. What happens in the Azulão field could be replicated to supply other locations in the interior of the state, making room for the replacement of diesel with natural gas, with low cost and less pollution.

In addition, Wilson Lima added that the Azulão field will decentralize the Manaus Free Zone and make room for the internalization of development in the Itacoatiara geographical region.

Natural gas

Eneva won, by auction, the right to explore the Azulão natural gas field, which was discovered in 1999 and sold by Petrobras in 2017, for R$ 54.5 million. The company operates in other Brazilian states with generation, sale and logistics of electricity.

The group is also one of the winners of the auction for the electric power supply of the capital Boa Vista and other regions of Roraima.

Source: Em Tempo (AM)

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