Nigeria Invites Petrobras Back to Oil Fields After Five-Year Absence

Nigeria is expressing strong interest in welcoming Brazilian oil giant Petrobras back to its oil fields after a five-year hiatus. During a two-day visit to Brazil, Nigerian President Bola Tinubu emphasized the potential for collaboration, 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 added that he appreciates President Lula’s commitment to facilitating this partnership swiftly.

The African Chamber of Commerce highlighted the expertise Petrobras possesses in deepwater oil and gas exploration, which could prove advantageous for Nigeria, particularly given its vast natural gas resources estimated at 210 trillion cu ft of untapped reserves. This potential was underscored by the Chamber’s remarks on the need for foreign investment to enhance Nigeria’s energy sector.

Petrobras had been active in Nigeria since the late 1990s until approximately five years ago when it divested its operations to concentrate on domestic growth in Brazil. The company is now eyeing international expansion again, with Nigeria emerging as a key target. Earlier in 2023, Nigeria’s Foreign Minister Stanley Knwocha noted that Petrobras is eager to return to the country, specifically to explore deepwater opportunities, stating, “They said they want frontier acreage in deep waters.”

In terms of its overall strategy, Petrobras is planning to invest $111 billion over the next five years, from 2025 to 2029. Of this total, $77 billion has been allocated for oil and gas exploration and production activities, marking a notable increase from a previous estimate of $73 billion. While the majority of these funds will be directed towards domestic projects, a portion is set aside for international ventures, including potential activities in Nigeria.

As the discussions between the two nations progress, the return of Petrobras could significantly enhance Nigeria’s oil and gas sector. The collaboration could lead to the development of the country’s rich natural gas reserves and further solidify its position in the global energy market.