Foreign oil giants seek re-entry into Nigeria's oil market, eye deepwater prospects
Petrobas' re-entry into Nigeria's oil market marks a significant shift from its previous divestment strategy, reflecting a renewed commitment to expanding its international presence.
The development was disclosed in a post by Nigeria's Vice President, Kashim Shettima, on X (formerly Twitter) yesterday. Shettima attributed Petrobras' renewed interest in Nigeria to the economic reforms introduced by the Tinubu-led administration.
' 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 revitalise bilateral cooperation ahead of the 2025 Nigeria–Brazil Strategic Dialogue Mechanism (SDM), ' he noted.
Speaking further, Shettima added, ' We have not maximally capitalised on the fraternity between us and Brazil, but it is better late than never. The upcoming SDM presents an opportunity to execute sector-specific Memoranda of Understanding (MoUs) and unlock investment flows.'
The update came amid an inter-ministerial review meeting chaired by the Vice President at the Presidential Villa in Abuja, convened to coordinate Nigeria's preparations for the second session of the SDM, scheduled for June 2025.
Confirming the development, Nigeria's Foreign Affairs Minister, Yusuf Tuggar—who was part of the delegation—stated that Petrobras is keen on acquiring frontier acreage in Nigeria's deep waters.
"Petrobras is no longer active in Nigeria, but they are very keen on coming back to Nigeria.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," Tuggar was quoted in a statement from the vice president's office as saying.
This interest aligns with Nigeria's broader 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.
Petrobas' interests in Nigeria's oil industry
Petrobras, officially known as Petróleo Brasileiro S.A., is Brazil's state-controlled oil and gas corporation and stands as one of the largest energy companies globally.
Petrobras initiated its operations in Nigeria in 1998, participating in several deepwater projects as part of its international expansion strategy.
Petrobras held an indirect 8% stake in the Agbami Field (OML 127), operated by Chevron, which peaked at around 250,000 barrels per day.
It also had a 16% indirect interest in the Akpo and Egina Fields (OML 130), operated by TotalEnergies, with peak outputs of 175,000 and 200,000 barrels per day, respectively.
However, in 2020, Petrobras sold its 50% stake in Petrobras Oil & Gas B.V. (POGBV), a joint venture through which it held its Nigerian assets.
This divestment marked the company's exit from the Nigerian oil sector and was part of a broader strategy to streamline operations and refocus on core domestic projects in Brazil.
Now, in 2025, Petrobras is seeking to re-enter the Nigerian oil industry with a specific interest in frontier deepwater acreage.
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