Petrobras said it was “surprised” by a regulator’s decision that prevented the Brazilian state-controlled company from conducting drilling operations in the environmentally sensitive Foz do Amazonas basin in the country’s northern equatorial margin.

Earlier this week, Brazil’s environmental agency Ibama rejected a Petrobras application to spud the Morpho wildcat in Block FZA-M-59 due to a set of “technical inconsistencies” on the project, confirming an earlier report on the topic by Upstream.