Petrobras is shifting its exploration focus to Africa, seeking opportunities in countries like Ivory Coast, Nigeria, and Namibia, as CEO Magda Chambriard highlights geological similarities with Brazil. The company aims to boost reserves amidst delays in Brazil’s Amazon region. Petrobras recently acquired stakes in South Africa and Sao Tome and Principe, and is also eyeing India. However, competitive challenges persist, including being outbid in Namibia.
Petrobras aims to explore opportunities in Africa as its primary zone of expansion outside of Brazil, the company’s CEO, Magda Chambriard, recently mentioned in an interview with Reuters. The Ivory Coast, in particular, has shown strong support, granting Petrobras a preference for nine offshore exploration blocks in the deep and ultra-deep waters off its coast. Chambriard emphasized the country’s warm welcome, describing it as rolling out the “red carpet” for the Brazilian company.
In addition to the welcoming approach from Ivory Coast, other African nations like Nigeria, Angola, and Namibia have expressed their willingness to collaborate with Petrobras on various projects. Chambriard pointed out the geological similarities between Eastern Brazil and parts of Africa, which further justifies their expansion strategy. “We are experts in the eastern margin of Brazil,” she noted. “So we need to go to Africa.”
Petrobras has increasingly focused on acquiring overseas oil assets over the past few years, particularly in Africa. The motivation behind this push is to bolster reserves as the company navigates significant delays in receiving environmental permits for new drilling operations near the Amazon rainforest. These plans signify a departure from the previous strategy, where Petrobras sold off assets in Africa to prioritize Brazil’s high-yield presalt fields.
The company has certainly made some strides in the African oil sector. Just this year, Petrobras purchased a stake in an offshore oil field in South Africa and, earlier in 2024, acquired an interest in fields located in Sao Tome and Principe. Chambriard indicated that Petrobras is looking to drill a well in those areas within the current year.
However, not everything has gone according to plan. Recent bidding opportunities have posed challenges, including being outbid by TotalEnergies for a stake in Galp Energia’s recent discovery in the Mopane field off the coast of Namibia. “We hope to be invited” to further develop Mopane, Chambriard remarked, although she did not provide additional details.
Moreover, Petrobras is also seeking to expand its footprint to India, planning to participate in an oil block auction set for July. This indicates a broad and ambitious strategy as Petrobras looks beyond Brazil’s borders while adapting to the challenges within.
Petrobras is strategically pivoting towards Africa for exploration opportunities, primarily in response to challenges faced within Brazil. With supportive nations such as Ivory Coast and interest from others like Nigeria and Namibia, the company is looking to capitalize on similar geological conditions observed in both regions. Recent acquisitions reflect this renewed focus, even as competitive obstacles arise. Additionally, Petrobras is eyeing ventures in India, indicating a broader strategy aimed at diversifying its operations globally.
Original Source: www.offshore-mag.com
