Petrobras set to return to Nigeria’s Deepwater sector

Brazilian oil giant Petrobras is poised to make a return to Nigeria’s oil sector, focusing on deepwater exploration.
This move signals a significant boost in Nigeria-Brazil energy relations, driven by President Bola Tinubu’s reforms aimed at attracting global investment. The development comes ahead of the second Nigeria-Brazil Strategic Dialogue Mechanism in June 2025.
Key Takeaways

Petrobras is targeting deepwater oil investment in Nigeria.
The move is a direct result of President Tinubu’s oil sector reforms.
Discussions also include ethanol blending partnerships with NNPCL.
The re-engagement is part of a broader Nigeria-Brazil Strategic Dialogue.
Multiple Memoranda of Understanding (MoUs) across various sectors are under review.

Petrobras’s renewed interest in Nigeria’s deepwater frontier blocks was announced by Vice President Kashim Shettima during an inter-ministerial review meeting. This initiative aligns with President Tinubu’s broader strategy to attract foreign investment and strengthen international partnerships. The company’s return is a testament to Nigeria’s efforts to create a more attractive investment climate in its oil and gas sector.
As one of the world’s largest oil producers, Petrobras’s involvement is expected to inject much-needed capital and expertise into Nigeria’s deepwater exploration, an area known for its potential but also its challenges.
The Brazilian company has previously operated in Nigeria’s oil sector but had scaled back its activities due to various market and operational constraints. With the new reforms being implemented by the Tinubu administration, Petrobras is optimistic about the prospects of a successful re-entry.
Foreign Affairs Minister Yusuf Tuggar confirmed ongoing discussions with Petrobras, which also include potential ethanol blending partnerships with the Nigerian National Petroleum Company Limited (NNPCL).
This collaboration highlights a shared interest in exploring renewable energy solutions, particularly as both countries seek to diversify their energy portfolios in response to global climate change initiatives.
The upcoming Nigeria-Brazil Strategic Dialogue Mechanism in June 2025 is expected to solidify these and other collaborations, particularly as Brazil hosts significant global events such as the G20 Summit and COP30 in the same year.
The strategic dialogue emphasizes the importance of fostering bilateral ties that go beyond the energy sector. Notably, Nigeria and Brazil are actively pursuing collaborations that extend into various fields. Twelve draft Memoranda of Understanding (MoUs) are currently under review, covering diverse topics crucial for mutual development.
In the energy sector, discussions remain focused on deepwater exploration and ethanol blending, aiming to capitalize on Nigeria’s vast resources while addressing sustainability concerns. The agricultural sector is also a focal point, with joint research initiatives and technology transfer planned for crops such as soybean and cassava as part of the Nigeria-Brazil Green Imperative Project. This agricultural collaboration aims to boost food security and enhance productivity for local farmers.
Cultural exchanges are set to flourish as well, with upcoming collaborations in film and heritage exhibitions planned to mark significant anniversaries, such as FESTAC at 50. These initiatives aim to deepen cultural ties, facilitating a greater understanding and appreciation of each nation’s history and contributions.
In the health sector, opportunities for pharmaceutical research, local manufacturing, and medical training are being explored, with Brazil serving as a model for Nigeria’s health reform agenda. The Brazilian healthcare system has undergone significant changes in recent years, and lessons learned from these reforms could be instrumental in guiding Nigeria’s approach to improving healthcare access and quality.
These comprehensive discussions underscore a robust commitment from both the Brazilian government and private sector stakeholders to deepen their engagement with Nigeria. As the global energy landscape evolves, having strategic partnerships will be essential for both nations to navigate new challenges while leveraging each other’s strengths.