Brazil’s state oil company, Petrobras, is seeking to re-enter Nigeria’s oil sector, with a specific focus on frontier deepwater acreage.
This was confirmed by the Minister of Foreign Affairs, Ambassador Yusuf Tuggar, according to a statement issued by the Senior Special Assistant to the President on Media & Communications (Office of the Vice President), Stanley Nkwocha, on May 14, 2025.
It was revealed that, as the economic reforms of President Bola Ahmed Tinubu’s administration take root, Petrobras, which had previously wound down its operations in Nigeria at the Agbami Field-is now actively engaging with Nigerian authorities.
This engagement is part of broader efforts to revitalise bilateral cooperation ahead of the 2025 Nigeria-Brazil Strategic Dialogue Mechanism (SDM).
Discussion on Petrobras’ Return to Nigeria
Petrobras’ return was discussed on Wednesday during an interministerial review meeting chaired by Vice President Kashim Shettima at the Presidential Villa, Abuja.
- The meeting aimed to coordinate Nigeria’s preparations for the second session of the SDM, scheduled for June 2025.
Yusuf Tuggar confirmed ongoing engagements with Petrobras, stating, “Apart from ethanol, which they are hoping to engage the NNPCL for blending, Petrobras is also being actively engaged, and we expect they will form part of the delegation to Nigeria. Petrobras is no longer active in Nigeria, but they are very keen on coming back. They said they want frontier acreage in deep waters”.
- The Foreign Affairs Minister emphasised that Brazil’s preparations for the dialogue are well advanced, with both government agencies and private sector players being actively engaged by the Brazilian Vice President.
- The Ministry of Foreign Affairs, which is coordinating the interministerial working groups, noted that at least 12 draft MOUs are pending approval from the Ministry of Justice, targeting areas such as energy, health, culture, and agriculture.
Speaking at the meeting, Vice President Shettima said, “The presence of six ministers and the Solicitor-General of the Federation in this review meeting ahead of the second session of the Nigeria-Brazil Strategic Dialogue Mechanism shows the importance we have attached to our relationship with Brazil.”
- The Vice President acknowledged that Nigeria has not maximally capitalised on its relationship with Brazil, adding, “It is better late than never.”
- He advised the ministers to ensure that the upcoming SDM presents an opportunity to execute sector-specific Memoranda of Understanding (MOUs) and unlock investment flows into Nigeria.
The Vice President particularly noted that 2025 represents a critical moment of engagement between Nigeria and Brazil, emphasising that the convergence of international events provides Nigeria with a unique opportunity to advance its interests on the global stage.
Backstory
Back in May 2017, Petrobras decided to divest as much as $21 billion worth of assets, following a dramatic increase in the company’s debt to $100 billion at the time.
- Petrobras did not only plan to sell its Nigerian oil fields, but also attempted to sell other assets to reduce its debt burden.
- Petrobras reached an agreement to sell $2.9 billion worth of assets to Equinor AXA, a Norwegian company.
- Petrobras, which began operations in Nigeria in 1998 in the deep waters off the coast of the Niger Delta, eventually sold off its stakes more than 10 years ago to raise cash for domestic projects.
In February 2025, the Brazilian state energy firm said it was in talks with companies, including existing partners ExxonMobil, Shell, and TotalEnergies, to buy a share of their African assets.
