Petrobras’ impending re-entry in Nigeria’s upstream sector is a remarkable milestone in unlocking the country’s massive oil and gas reserves, as represented in its Deepwater and Ultra-Deepwater Opportunities, a step towards reigniting Nigeria-Brazil energy joint venture operations and cooperation, a partnership that was severed five years ago.
Petrobras divested its Nigerian oil assets – Oil Mining Leases (OML) 127 and OML 130, located in the Agbami, Egina, and Akpo fields – to Canadian Africa Oil Corp. for $1.5 billion in 2020 due to financial strain and in an attempt to streamline its global upstream portfolio in Africa. The exit was allegedly to be driven by domestic corruption scandals
The Brazilian state-owned oil company’s renewed interest in re-entering the Nigerian energy business space will not only ramp up investment in the critical aspect of gas and oil development, but will also inject its endowed expertise in modern transition energy innovation and refining capacity development.
On the sidelines of Nigerian President Bola Ahmed Tinubu’s State Visit to Brazil, NNPC Ltd.’s Executive Vice President, Upstream, Mr. Udy Ntia, held a high-powered energy investment meeting with Magda Chambriard, Chief Executive Officer of Petrobras, Brazil’s National energy company. The high-powered delegations include the government officials, industry leaders, and business executives from Nigeria and Brazil.
The engagement focused on rebuilding energy partnerships between Nigeria and Brazil, with a particular emphasis on an official invitation to Petrobras to resume operations in Nigeria following their exit in 2021.The discussions were centred on Petrobras’s potential re-entry into Nigeria’s upstream sector, with specific attention to deepwater and ultra-deepwater opportunities.
The re-entry of Petrobras, Vaalco USA, and other giant upstream players has demonstrated Nigeria’s commitment to attracting investment, supported by a robust legal, regulatory framework and tax incentives. With 37 billion barrels of oil reserves and 200 trillion cubic feet of gas reserves, Nigeria presents a compelling case for collaboration. Petrobras expressed interest in exploring new areas, aligning with NNPC Ltd.’s commitment to fostering mutually beneficial partnerships in the energy sector.
Mr. Ntia highlighted NNPC Ltd.’s alignment with the presidential directives on production and investment targets for 2027 and 2030, the present production focus, and year-end goals. He reiterated the company’s efforts towards achieving these targets, energy transition and decarbonisation plans, vast untapped gas reserves, and reaffirmed Nigeria’s readiness for business.
The discussion also provided a platform to explore new opportunities for collaboration, advance practical pathways for trade, investment flows, and infrastructure financing between the two countries. NNPC Ltd. reaffirmed its commitment to fostering mutually beneficial partnerships with international counterparts.
In a similar vein, Nigeria’s Finance Minister and Coordinating Minister of the Economy, Honourable Minister Wale Edun, has reiterated Nigeria’s position as a market that is open for business, aligning with the nation’s strategic economic objectives.
Wale made this disclosure in a forum, themed “Partnerships for Development,” which brought together policymakers, business leaders, and investors from both countries to consolidate on progress from previous editions through concrete actions and partnerships, focusing on food security, energy transition, health innovation, and financing.
The forum was attended by key dignitaries, including Honourable Ministers, Jumoke Oduwole, Minister of Industry, Trade and Investment, Festus Keyamo, Minister of Aviation and Aerospace Development, and Central Bank Governor, Yemi Cardoso, with closing remarks by President Bola Ahmed Tinubu, GCFR.
