Nigeria Invites Petrobras Back to Boost Oil and Gas Sector

Nigeria is actively seeking the return of Brazil’s state-owned oil company, Petrobras, to its oil fields after a five-year absence. This development comes during Nigerian President Bola Tinubu‘s two-day visit to Brazil, where he expressed optimism about Petrobras resuming operations in Nigeria.

Partnership Opportunities in Nigeria’s Energy Sector

Speaking during his visit, President Tinubu stated, “We have the largest gas repository. I don’t see why Petrobras shouldn’t return as a partner in Nigeria as soon as possible.” He emphasized his appreciation for Brazilian President Lula da Silva‘s commitment to facilitating this return swiftly. His remarks were reported by The Sun.

The African Chamber of Commerce has highlighted Petrobras’s expertise in deepwater oil and gas exploration, which could significantly benefit Nigeria, particularly given its vast natural gas potential. Current estimates suggest that Nigeria holds around 210 trillion cubic feet of untapped natural gas resources, underscoring the importance of international partnerships in developing this sector.

Petrobras maintained a presence in Nigeria from the late 1990s until approximately five years ago, when it divested its operations to concentrate on growth within Brazil. Now, as the company looks to expand internationally once again, Nigeria has emerged as a key target for future investment.

Petrobras’s Planned Investments and Interest in Nigeria

Earlier in 2023, Nigeria’s Foreign Minister, Stanley Knwocha, revealed that Petrobras is eager to return and develop the country’s deepwater oil and gas resources. “Petrobras is no longer active in Nigeria, but they are very keen on coming back to Nigeria. They said they want frontier acreage in deep waters,” Knwocha noted in May.

Petrobras has announced ambitious spending plans, intending to invest $111 billion from 2025 to 2029. Of this total, $77 billion is allocated specifically for oil and gas exploration and production. This figure marks a $10 billion increase from previous estimates, demonstrating Petrobras’s renewed focus on both domestic and international markets.

While most of the planned expenditures will occur within Brazil, a portion will support Petrobras’s international expansion efforts, potentially paving the way for a new chapter in its relationship with Nigeria.

The prospect of Petrobras’s return highlights the ongoing opportunities in Nigeria’s oil and gas sector, as the country seeks to leverage its vast resources through international expertise and investment. With President Tinubu’s proactive approach, the collaboration with Petrobras could lead to significant advancements in Nigeria’s energy landscape.