Petrobras to Focus on African Oil Exploration, Says CEO

Petrobras is focusing on Africa for exploration outside Brazil. CEO Magda Chambriard stated the Ivory Coast is welcoming Petrobras for offshore exploration. The company is also interested in Nigeria, Angola, and Namibia. Recent acquisitions include stakes in South Africa and Sao Tome and Principe. Petrobras plans to participate in an upcoming oil auction in India despite previous setbacks in bidding.

Petrobras, the Brazilian state-controlled oil company, is shifting its focus towards Africa for exploration ventures outside its home turf. In a recent interview with Reuters, the company’s CEO, Magda Chambriard, expressed a keen interest in making Africa a central part of its development strategy. This comes as the Ivory Coast has rolled out the welcome mat for Petrobras, offering preferential access to nine offshore exploratory blocks in its deep and ultra-deep waters.

Chambriard noted other African nations like Nigeria, Angola, and Namibia are also keen on collaborating with Petrobras. She highlighted the geological similarities between Brazil’s eastern margin and certain areas in Africa. “We are experts in the eastern margin of Brazil,” she asserted. “The correlation between Brazil and Africa is unequivocal, so we need to go to Africa.”

In recent years, Petrobras has actively sought to acquire stakes in international oil assets, particularly in Africa. This strategic pivot comes as the company faces challenges, notably delays in securing environmental permits for drilling new oil wells off the Amazon rainforest coast, making overseas exploration more pressing.

Interestingly, this marks a renewed interest in Africa for Petrobras after the company previously divested from the continent. Under past administrations, the focus had shifted to Brazil’s high-productivity presalt fields. However, Petrobras has re-entered the African scene, having acquired a stake in an offshore oil field in South Africa in 2023, and plans to drill a well in 2024 in Sao Tome and Principe, a small island nation.

Despite robust plans, the company encountered a setback when they were outbid by TotalEnergies for a stake in Galp Energia’s Mopane field offshore Namibia. “We hope to be invited” to engage in Mopane development, Chambriard stated, although she refrained from elaborating further.

Pushing its ambitions even further, Petrobras is also eyeing opportunities off the coast of India. With an oil block auction set for July, the company intends to participate, potentially adding another international venture to its growing portfolio.

Petrobras is shifting its exploration strategy to prioritize Africa, aiming to leverage geological parallels with Brazil for growth. The company has received favorable offerings from Ivory Coast and is exploring options in Nigeria, Angola, and Namibia. Despite some setbacks in bidding, Petrobras remains committed to expanding its reach, even looking towards developing opportunities in India. This direction signifies a significant strategic pivot for the company as it navigates domestic regulatory hurdles while aiming to boost its reserves.

Original Source: www.offshore-mag.com