Brazilian oil company Petrobras mulls new deep-sea drilling ventures in Nigeria, as per statements from the Nigerian National Petroleum Corporation (NNPCL)

In a significant development, Brazil's state-owned oil giant, Petrobras, is exploring fresh opportunities in Nigeria's upstream sector. This potential re-entry was discussed during a dialogue between the Nigerian National Petroleum Company Limited (NNPCL) and Petrobras, aligning with NNPC Ltd.'s commitment to fostering mutually beneficial partnerships in the energy sector.

The dialogue took place during President Bola Tinubu's State Visit to Brazil, where Nigeria and Brazil signed five Memoranda of Understanding (MoUs) to strengthen trade, diplomacy, science, aviation, and finance cooperation. The meeting between NNPCL's Executive Vice-President for Upstream, Udy Ntia, and Petrobras Chief Executive Officer, Magda Chambriard, was a key part of this visit.

President Tinubu welcomed Petrobras's imminent return to Nigeria, five years after the Brazilian company halted its joint venture operations. He expressed his hope that Petrobras would join as a partner in Nigeria's upstream sector, specifically in deepwater and ultra-deep-water, as soon as possible. This comeback was described by Tinubu as a milestone that would "reignite robust economic cooperation" in the oil and gas sector between both nations.

Petrobras, which divested as much as $21 billion worth of assets in May 2017 due to a dramatic increase in the company's debt, now seems to be looking at Nigeria as a promising market. The opportunities for Petrobras in Nigeria's upstream sector are particularly attractive given the country's vast reserves. Nigeria has 37 billion barrels of oil reserves and 200 trillion cubic feet of gas reserves, making it a compelling case for collaboration.

The session aimed to explore new opportunities for collaboration, trade, investment flows, and infrastructure financing between the two countries. The NNPC delegation led by Udy Ntia engaged with various officials, industry leaders, and business executives from both Nigeria and Brazil during the high-level Business Roundtable hosted by Citi Brasil in São Paulo.

This engagement between NNPCL and Petrobras demonstrates Nigeria's commitment to attracting investment, supported by a strong legal, regulatory framework and tax incentives. The return of Petrobras is expected to potentially happen around the year 2025, marking a significant step forward in the energy partnership between Nigeria and Brazil.

In reaffirming its commitment to fostering mutually beneficial partnerships with international counterparts, NNPC Ltd. is paving the way for a brighter future in the energy sector, not just for Nigeria, but for the global community as well.

Brazilian oil company Petrobras mulls new deep-sea drilling ventures in Nigeria, as per statements from the Nigerian National Petroleum Corporation (NNPCL)