Petrobras Returns to Nigeria After Decade-Long Absence, Targets Deepwater Oil Blocks

Brazilian state oil company Petrobras plans to return to Nigeria’s oil sector after more than ten years away. Nigeria’s Foreign Minister Yusuf Tuggar confirmed the development during government meetings in May 2025.

The company wants frontier acreage in Nigeria’s deep waters. Petrobras previously operated in Nigeria from 1998 but divested its assets over a decade ago to fund domestic projects.

The Brazilian giant held an 8% stake in Chevron’s Agbami Field, which produced 250,000 barrels daily at peak. It also owned 16% of TotalEnergies’ Akpo and Egina Fields, producing 175,000 and 200,000 barrels daily respectively.

Vice President Kashim Shettima chaired an interministerial meeting at the Presidential Villa in Abuja. Six ministers and the Solicitor-General attended the session. The meeting prepared Nigeria for the Strategic Dialogue Mechanism with Brazil scheduled for June 2025.

Petrobras operates within a $111 billion investment strategy running through 2029. The company allocated $77 billion specifically for exploration and production activities. This represents a $10 billion increase from earlier projections, with portions designated for international ventures.

Nigeria has attracted over $8 billion in deepwater and gas investments within the past year. The Petroleum Industry Act of 2021 reformed legal and fiscal frameworks governing the sector. These changes created more attractive conditions for foreign investors.

Brazil-Nigeria Energy Partnership Deepens Ahead of 2025 Summits

The timing aligns with Brazil hosting major international summits in 2025. Brazil will host the BRICS summit, G20 meeting, and COP30 climate conference. Nigeria plans to leverage these events to promote investment and strengthen bilateral ties.

Beyond oil exploration, Petrobras discusses ethanol blending opportunities with Nigeria’s National Petroleum Corporation. This collaboration highlights Brazil’s biofuel expertise and supports Nigeria’s energy transition goals.

ExxonMobil announced a $1.5 billion offshore investment earlier this year. Shell moved forward with its Bonga North deepwater project containing 300 million barrels. The project targets peak production of 110,000 barrels daily.

Nigeria’s deepwater basins contain billions of barrels in untapped reserves. The Gulf of Guinea region remains largely underexplored despite high prospectivity. Technological advances in ultra-deepwater drilling make these reserves more accessible.

Petrobras brings extensive offshore experience from Brazil’s pre-salt fields. The company’s deepwater expertise aligns with Nigeria’s focus on offshore development. Past discoveries confirmed the region’s hydrocarbon potential.

The Strategic Dialogue Mechanism aims to establish sector-specific agreements. These memoranda will streamline capital flows and encourage foreign direct investment. Both countries seek to maximize their historic relationship and advance joint economic interests.

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