Brazil's National Agency of Petroleum, Natural Gas and Biofuels (ANP) voted on Friday to create an exploratory block in the municipality of Tabuleiro do Norte, in the state of Ceará. The block, named POT-T-551, covers the area where farmer Sidrônio Moreira stumbled upon crude oil in 2024 while attempting to drill a water well on his property.
Moreira initially struck black liquid, feared contamination, and abandoned the first attempt. A second drill yielded nothing, so the family returned to the original hole. With help from a professor at the Federal Institute of Ceará (IFCE), they identified characteristics similar to oil produced in neighboring Rio Grande do Norte and alerted the ANP. The agency confirmed the substance was petroleum in May 2024, according to the farmer’s son Saulo Santiago Moreira who spoke to Folha de S.Paulo.
Under Brazilian law, the subsurface belongs to the Union, which grants exploration rights through competitive bidding processes. Landowners are entitled to a financial compensation equal to 1% of the production value. In 2025, 2,606 properties nationwide received such payments, totaling R$ 173.3 million, which averages to roughly R$ 5,500 per month per holder.
Before the block can be auctioned, it must be analyzed by the ministries of Mines and Energy and Environment for environmental licensing. After those assessments, a public hearing will be held to consult affected communities. Only then will the area be included in the national offer of exploratory blocks, and if companies show interest, it will go to lease.
POT-T-551 is one of 24 areas approved in the same ANP meeting, all located in the Potiguar basin that spans Ceará and Rio Grande do Norte. The ANP has not disclosed the exact boundaries of each block, but confirmed that at least one comprises Moreira’s land, where "the occurrence of fluid already confirmed as oil" was reported. The agency said the block is located "where recently was reported the occurrence of fluid already confirmed as petroleum."
The farmer’s son, Saulo Santiago Moreira, told Folha de S.Paulo that the family is "very happy" about the prospect, though he expects exploration to begin only after a lengthy process. He added that he believes extraction will eventually happen, even if it takes time.
The 1% landowner compensation rule has been in place for decades. In 2025 the total paid to landowners across Brazil amounted to R$ 173.3 million, spread over 2,606 properties, indicating the modest scale of individual payouts relative to overall oil revenues.