Nigeria Invites Petrobras Back to Oil Sector After Five-Year Hiatus

Nigerian President Bola Tinubu has expressed a strong desire for Brazilian oil giant Petrobras to return to Nigeria’s oil fields after a five-year absence. Tinubu made these comments during a two-day visit to Brazil, stating, “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 also acknowledged Brazilian President Lula da Silva’s commitment to facilitating this return quickly.

During this visit, Tinubu emphasized the significant untapped natural gas potential in Nigeria, estimated at 210 trillion cubic feet. The African Chamber of Commerce highlighted Petrobras’s expertise in deepwater oil and gas exploration, suggesting that it would be particularly beneficial for Nigeria’s efforts to develop its natural resources.

Petrobras operated in Nigeria from the late 1990s until approximately five years ago when it divested its operations to concentrate on growth within Brazil. As the company considers international expansion again, Nigeria has emerged as a key target. Earlier in 2023, Nigeria’s foreign minister, Stanley Knwocha, confirmed that Petrobras is eager to re-enter the Nigerian market, expressing interest in “frontier acreage in deep waters.”

The Brazilian company has ambitious plans for the next five years, intending to invest $111 billion from 2025 to 2029. Of this total, $77 billion is allocated specifically for oil and gas exploration and production activities. This new spending plan represents an increase of $10 billion from a previous estimate, which had earmarked $73 billion for exploration and production.

While much of the planned investment will focus on domestic projects, a portion will also support Petrobras’s international aspirations, including a potential return to Nigeria. The ongoing discussions between Nigerian and Brazilian officials indicate a strengthening of bilateral economic ties, particularly in the energy sector.

As both countries explore this opportunity, the return of Petrobras could significantly impact Nigeria’s oil production capabilities and boost its economy, particularly in the face of global energy demands. The partnership could also enhance technological collaboration in deepwater exploration, further positioning Nigeria as a key player in the West African oil landscape.