Brazilian President Luiz Inacio Lula da Silva on Monday said he finds it "difficult" to believe that oil exploration in the Amazon basin would cause environmental damage to the region's rainforest, the largest in the world. Brazil's environmental protection agency Ibama last week blocked a request by Petroleo Brasileiro to drill at the mouth of the Amazon near Amapa, in a much-awaited decision seen as a broader ruling on whether the state-run oil giant will be able to explore the oil-rich, environmentally sensitive region.
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