The Nigerian National Petroleum Company Limited (NNPCL) has announced that Petrobras, Brazil’s state-owned oil giant, is exploring fresh opportunities in Nigeria’s upstream sector, with specific attention to deepwater and ultra-deep-water opportunities.
In a statement posted on X (formerly twitter) on Wednesday, NNPCL said its Executive Vice-President for Upstream, Udy Ntia, met with Petrobras Chief Executive Officer, Magda Chambriard, on the sidelines of President Bola Tinubu’s state visit to Brazil.
“Petrobras expressed interest in exploring new areas, aligning with NNPC Ltd.’s commitment to fostering mutually beneficial partnerships in the energy sector.
“The engagement focused on rebuilding energy partnerships between Nigeria and Brazil, with a particular emphasis on inviting Petrobras to resume operations in Nigeria following their exit in 2021.
“Discussions centred on Petrobras’s potential re-entry into Nigeria’s upstream sector, with specific attention to deepwater and ultra-deep-water opportunities.
“The dialogue demonstrates Nigeria’s commitment to attract investment, supported by a strong 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,” the NNPCL stated.
NNPCL reaffirms commitment to beneficial partnerships
NNPCL also said it took part in a high-level Business Roundtable hosted by Citi Brasil in São Paulo, held on the sidelines of President Tinubu’s State Visit to Brazil.
According to the statement, the NNPC delegation led by Ntia engaged with senior government officials, industry leaders, and business executives from Nigeria and Brazil.
“The session 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,” NNPCL stated.
Backstory
On Tuesday, President Tinubu welcomed Petrobras’s imminent return to Nigeria, five years after Brazil’s state-owned oil company halted its joint venture operations.
Speaking at a joint press conference in Brasília during his State Visit to Brazil on Monday, Tinubu described Petrobras’ comeback as a milestone that would “reignite robust economic cooperation” in the oil and gas sector between both nations.
“We have the largest gas repository. So, I don’t see why Petrobras doesn’t join as a partner in Nigeria as soon as possible. I appreciate President Lula’s promise that this will be done as soon as possible,” he said in a statement signed by his Special Adviser on Information and Strategy, Bayo Onannuga.
During the state visit, Nigeria and Brazil signed five Memoranda of Understanding (MoUs) to strengthen trade, diplomacy, science, aviation, and finance cooperation.
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.
