(MENAFN- The Rio Times) Brazil just approved what could become the largest economic expansion in its northern regions' history-a decision that hinges on oil reserves so vast they dwarf the fields that built the nation's energy industry.

The numbers tell a startling story. If Petrobras successfully develops the Equatorial Margin at levels matching neighboring Guyana's output, Brazil 's GDP would surge by R$ 419 billion-approximately $75 billion.

To grasp this scale: the entire state of Amapá, which sits at the heart of this new frontier, currently produces just R$ 23 billion in annual GDP. The oil development alone would be eighteen times larger than Amapá's entire existing economy.

This isn't marginal growth. It represents adding roughly 3.5 percent to Brazil's current GDP in one move-equivalent to creating an entirely new economic sector overnight, larger than Brazil's entire agricultural equipment industry or its pharmaceutical sector.

The economic mechanics are straightforward but transformative. Modeling based on Guyana's 700,000 barrels per day production, Petrobras projects the Equatorial Margin would generate 2.1 million direct jobs-more workers than currently employed in Brazil's entire automotive manufacturing sector.



These aren't temporary construction positions but permanent operational roles in drilling, logistics, engineering, and support services. Government revenues tell an equally dramatic story.

The project would deliver R$ 25 billion in new tax revenues annually, plus R$ 20 billion in royalties and special participation fees.

Combined, that's R$ 45 billion flowing into public coffers each year-enough to fund Brazil's entire Bolsa Família social program twice over, or to build 450 new hospitals at standard construction costs.

But here's what makes this moment historically significant: Brazil is racing against time. The southeastern subsalt fields-discovered off Rio de Janeiro and São Paulo in the 1970s-powered Brazil to energy independence and made Petrobras a global player.

Those fields now face inevitable decline starting around 2030. Without replacement reserves, Brazil risks returning to net oil importer status within a decade.

That shift would drain foreign currency reserves and undermine the energy security achieved after fifty years of investment. Petrobras environmental licensing manager Daniele Lomba revealed a crucial detail that reframes everything.
Brazil's Northern Oil Frontier Could Rewrite Its Economic Map
The Equatorial Margin basins, stretching 2,200 kilometers from Rio Grande do Norte to Amapá along Brazil's northern coast, are actually larger than the combined southeastern basins of Campos, Santos, and Espírito Santo that have sustained Brazilian oil production since the 1950s.

Think about that. Brazil is sitting on potentially more oil in its unexplored north than in all the fields that built its modern economy combined. The regional impact would be revolutionary.

Brazil's northern states-Amapá, Pará, Maranhão-have languished as the country's poorest regions for generations, with GDP per capita running 40-60 percent below the national average. The oil development would flip this equation entirely.

Amapá's GDP could potentially grow from R$ 23 billion to over R$ 100 billion within a decade if projections hold. Pará and Maranhão would see similar transformations as infrastructure, ports, and service industries expand to support offshore operations.

This explains why the approval came after five years of contentious debate. Environmental groups point to risks near the Amazon River's ocean outlet, where unique ecosystems meet potential drilling sites.

International climate advocates argue that opening new oil frontiers contradicts Brazil's climate commitments, especially as it prepares to host COP30 talks in Belém in 2026.

Yet Petrobras CEO Magda Chambriard frames the decision differently: as "energy addition" rather than transition, arguing that 3 billion people globally still lack reliable energy access.

Brazil's own northern regions suffer significant energy poverty despite sitting atop massive potential reserves. The drilling has already begun.

A rig positioned 175 kilometers off Amapá's coast started exploratory work in October, with $3 billion committed across 15 wells through 2029. The initial five-month exploration phase will determine whether the geological models are correct.

If they are, Brazil will have secured its energy future and funded a development transformation for its most neglected regions. If the reserves disappoint, the country faces difficult choices about energy imports and regional development financing within a decade.

Either way, what happens in those northern waters over the next five years will reshape Brazil's economic geography for the next fifty.

MENAFN27102025007421016031ID1110255268