Petrobras Eyes Return to Nigeria as Leaders Strengthen Ties

Brazil’s state-run oil giant, Petróleo Brasileiro S.A. - Petrobras PBR, may soon make a comeback in Nigeria, five years after exiting the country. Nigeria’s president, during his visit to Brazil, announced that the country is eager to welcome the company back, citing its vast gas reserves and ongoing energy reforms. Petrobras, which began Nigerian operations in 1998, sold its stakes more than a decade ago to focus on domestic projects. Nigeria’s president noted that the company’s comeback could spark renewed energy-sector cooperation between the two countries. Since Nigeria has the largest gas repository, it is confident that Petrobras will re-enter its market to explore the reserves and build economic ties. Earlier, in the month of May, Nigeria’s foreign minister had said that the country was in discussion with Petrobras to pursue its deepwater exploration.

Nigeria Seeks Targeted Investment From Global South

Nigeria’s minister of Industry, Trade and Investment emphasized the country’s focus on attracting strategic investors, particularly from nations in the Global South such as Brazil, India and China. The government believes reforms are already improving foreign exchange access and creating an attractive investment environment.

Expanding Economic Cooperation Beyond Oil

Beyond oil and gas, Nigeria and Brazil signed multiple agreements covering trade, aviation, energy, science and finance. A notable highlight was an accord with Brazilian aircraft manufacturer Embraer S.A. ERJ to establish a service center in Nigeria. The service center established by Embraer would function as a central facility to handle key repairs and upkeep for the country’s expanding fleet. Additionally, a new direct flight route between Lagos and São Paulo, operated by Nigeria’s carrier Air Peace and approved under the BASA agreement, aims to boost business and cultural ties. Brazil and Nigeria also inked a Bilateral Air Services Agreement to promote trade and foster closer ties between citizens.

Trade Outlook Between Two Regional Giants

Nigeria is currently Brazil’s 49th largest export destination, with bilateral trade totaling $2.1 billion in 2024. Brazil’s exports to Nigeria mainly included sugar and jams, while imports from Nigeria were dominated by fertilizers. Both nations are betting that closer cooperation, particularly in energy, could expand this trade relationship significantly in the years ahead.

Although Petrobras, currently carrying a Zacks Rank #2 (Buy), did not comment on its potential return to Nigeria and how much boost it might provide, the company said that it is in talks with companies like Exxon Mobil Corporation XOM and Shell plc SHEL to buy a share of their African assets.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Exxon Mobil is a global giant in the exploration, production and marketing of oil and natural gas. It operates through four main segments — Upstream, Energy Products, Chemical Products and Specialty Products — covering a wide range of energy, petrochemical and specialty product offerings. In early 2025, ExxonMobil entered into a deal with Nigeria to invest in the country’s offshore oilfields.

London-based Shell is one of the primary oil supermajors — a group of the U.S. and Europe-based big energy multinationals with operations that span almost every corner of the globe. In the past, Shell has made discoveries and confirmed the hydrocarbon richness of Nigeria.

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