The Brazilian oil company, Petrobras, seeks to return to the Nigeria energy sector, with a revived interest in the oil blocks of Frontier Deepwater, marking a potential reversal of its previous retirement from the largest oil producer in Africa.
The development was confirmed by the Minister of Nigeria for Foreign Affairs, Yusuf Tuggar, during an inter-ministerial exam meeting held at the presidential villa, Abuja, while the preparations intensify for the strategic dialogue mechanism of the Nigeria-Brésile (SDM) scheduled for June 2025.
Once a stakeholder in the AGBAMI field – operated by Chevron – Petrobras left Nigeria over ten years ago in the midst of a debt crisis of $ 100 billion which forced the Brazilian oil giant to give in assets worldwide, including in West Africa. The company entered the Nigerian oil sector in 1998 and remained active for years in the country’s deep offshore blocks before leaving operations as part of a broader restructuring effort.
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But with economic reforms based on the Tinubu administration market and regulatory clarity signals in the petroleum sector, Petrobras explores a return. According to Tuggar, Petrobras holds the deep water opportunities, in particular the border area which may not have been widely developed yet.
“Petrobras is no longer active in Nigeria, but they are very eager to come back,” said Tuggar. “They said they wanted an area of border in deep waters.”
He added that the company also plans to collaborate with the Nigerian National Petroleum Company Limited (NNPCL) on the ethanol mixture, a potential extension of the global push of Brazil for the adoption of biofuels.
The meeting, chaired by vice-president Kashim Shettima, brought together key ministers and the general solicitor to align the objectives of Nigeria for the next SDM-a bilateral platform aimed at advancing cooperation in several sectors. Shettima stressed the strategic importance of the Nigerian-Brazil relationship, urging ministries to finalize the projects of agreements that could open the door to significant foreign investments.
“The presence of six ministers and the Solicitor General of the Federation shows the importance that we attach to our relationship with Brazil,” said Shettima. “2025 presents a critical opportunity to deepen economic and technical ties with one of the main emerging economies in the world.”
The dialogue will include 12 projects for memorandums for understanding legal authorization while waiting, covering sectors such as energy, agriculture, health and culture. Public institutions and Brazilian actors in the private sector, led by their vice-president, are involved in the performance of the event.
What leads Petrobras’s return?
Petrobras’ renewed interest in Nigeria aligns with its recent pivot towards the acquisition of assets abroad. In February 2025, the company revealed that it was in talks with major actors such as Exxonmobil, Shell and Totalengegia to join their existing African energy portfolios, while the company seeks to strengthen its operations upstream.
This change occurs while Petrobras emerges from years of austerity, having once planned to sell up to $ 21 billion in assets during his financial crisis in 2017. At the time, he sold various titles, including 2.9 billion dollars in world assets to the balance of Norway, as part of a wider debt reduction strategy.
The rebirth of interest in Nigeria should benefit both countries. For Nigeria, Petrobras’ back to school could revitalize exploration and production in deep offshore basins, many of which remain under-explore due to historical underinvestment and regulatory uncertainty. For Petrobras, Nigeria represents an entry point into the energy corridor of West Africa, offering a platform for long-term and long-term gross production.
Beyond oil, Petrobras should also discuss a biofuelle partnership with Nigeria. The company’s ethanol mixture proposal, if adopted, could create a secondary fuel market in the most populous nation in Africa. Tuggar noted that the company intended to collaborate with the NNPCL on the development of local ethanol mixture – echo to the Brazil model, where ethanol is a central element of the national fuel mixture.
This decision is outright in the broader energy transition plan of President Tinubu, which aims to reduce Nigeria’s dependence on petrol imports while attracting green energy investments.
However, experts warn that Petrobras’ return may depend on Nigeria’s ability to guarantee contractual stability, regulatory predictability and operational security in the Niger Delta, where most deep water activities are founded. The region has long struggled with hacking, sabotage and insecurity, even if oil majors continue to move their portfolios to less risky and little carbon assets.
In addition, Nigeria is confronted with a production collapse, with daily production hovering well below the 1.5 million barrels per day of the OPEC quota, largely of the raw flight and the vandalism of pipeline. Petrobras’ participation could strengthen confidence in the sector upstream, but only if Nigeria can guarantee that operating conditions are conducive.
The possible reintegration of Petrobras, if it is finalized, can not only mark a turning point for the relations of Brazil-Nigeria, but also report a new era for foreign participation on the Offshore Oil border in Nigeria. The next SDM dialogue in June will be essential, not only to shape this story, but also to point out whether Tinubu’s reforms have really transformed Nigeria into a viable investment destination once again.
