Petrobras, the Brazilian state-controlled oil and gas giant, is making a comeback into Nigeria’s oil market, signaling a shift from its previous divestment strategy and showcasing a renewed commitment to expanding its international presence.
The news of Petrobras’ return to Nigeria was disclosed by Vice President Kashim Shettima in a recent announcement. Shettima credited Petrobras’ renewed interest in Nigeria to the economic reforms implemented by the Tinubu-led administration, which have created a conducive environment for foreign investments.
“As the economic reforms of the administration of President take root, the company, which had previously wound down its operations in Nigeria at the Agbami Field, is now actively engaging with Nigerian authorities as part of broader efforts to revitalize bilateral cooperation ahead of the 2025 Nigeria–Brazil Strategic Dialogue Mechanism (SDM),” Shettima stated.
The upcoming SDM presents an opportunity for Petrobras to execute sector-specific Memoranda of Understanding (MoUs) and unlock investment flows, according to Shettima. The Vice President emphasized the importance of the longstanding fraternity between Nigeria and Brazil, highlighting the potential for enhanced collaboration in various sectors.
During an inter-ministerial review meeting chaired by the Vice President at the Presidential Villa in Abuja, preparations for the second session of the SDM scheduled for June 2025 were discussed. Nigeria’s Foreign Affairs Minister, Yusuf Tuggar, confirmed Petrobras’ interest in acquiring frontier acreage in Nigeria’s deep waters, further solidifying the company’s commitment to re-entering the Nigerian market.
This move aligns with Nigeria’s efforts to strengthen bilateral relations with Brazil, particularly in the energy sector. Earlier this year, Petrobras had also expressed interest in acquiring stakes in African assets from major oil companies such as ExxonMobil, Shell, and TotalEnergies, showcasing its strategic focus on expanding its presence in the region.
Petrobras, known officially as Petróleo Brasileiro S.A., first entered Nigeria in 1998 as part of its international expansion strategy, participating in deepwater projects and holding stakes in key oil fields such as Agbami (OML 127) and Akpo and Egina (OML 130). However, the company divested its Nigerian assets in 2020 as part of a broader operational restructuring to focus on domestic projects in Brazil.
Now, in 2025, Petrobras is eager to re-enter the Nigerian oil industry with a specific interest in frontier deepwater acreage, aiming to rebuild reserves and diversify its exploration portfolio by investing in new offshore opportunities outside Brazil. This strategic move underscores Petrobras’ commitment to global expansion and highlights Nigeria’s growing importance as a key market for international oil and gas companies.
