We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Petrobras Eyes Return to Nigeria as Leaders Strengthen Ties
Read MoreHide Full Article
Key Takeaways
Petrobras may re-enter Nigeria as reforms and vast gas reserves attract renewed interest.
Nigeria and Brazil signed accords spanning oil, trade, aviation, energy and finance sectors.
Embraer to set up a service center in Nigeria as Air Peace launches direct Lagos-Sao Paulo route.
Brazil’s state-run oil giant, Petróleo Brasileiro S.A. - Petrobras (PBR - Free Report) , 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 - Free Report) 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 - Free Report) and Shell plc (SHEL - Free Report) to buy a share of their African assets.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Petrobras Eyes Return to Nigeria as Leaders Strengthen Ties
Key Takeaways
Brazil’s state-run oil giant, Petróleo Brasileiro S.A. - Petrobras (PBR - Free Report) , 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 - Free Report) 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 - Free Report) and Shell plc (SHEL - Free Report) 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.