Economy
What Petrobras’ Potential Return Means For Nigeria’s Deepwater Operations: EXPLAINER
What Petrobras’ Potential Return Means For Nigeria’s Deepwater Operations: EXPLAINER
What Petrobras’ potential return means for Nigeria’s deepwater operations: EXPLAINER. In the last one year, four international oil companies (IOCs) have signed deepwater deals with Nigeria, and the number will soon increase as Petrobras, a Brazilian state-owned oil company, plans to return to Africa’s largest crude producer.
On August 26, President Bola Tinubu said Petrobras will soon return to Nigeria — five years after it exited — adding that the renewed engagement would reignite economic cooperation in the energy sector between both countries.
The announcement by Tinubu came three months after Vice-President Kashim Shettima said Petrobras was seeking re-entry into Nigeria’s oil sector, with a specific interest in frontier deepwater acreage.
Deepwater operations involve drilling and extracting oil and natural gas from beneath the ocean floor at significant depths, which is usually around 656 feet.
The deepwater oil blocks are located in areas of water depth beyond 200 metres and extending up to 200 nautical miles seaward from the coasts of Nigeria, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
INVESTMENTS IN NIGERIA’S DEEPWATER OPERATIONS
Since Tinubu took office, there have been several new investments or expressions of interest in Nigeria’s deepwater acreage.
ExxonMobil, on September 26, 2024, announced plans to invest $10 billion in Nigeria’s deepwater oil operations.
On December 16, 2024, Shell Nigeria Exploration and Production Company Limited (SNEPCo) announced a final investment decision (FID) on Bonga north, a deepwater project off the coast of Nigeria.
On Monday, the NUPRC signed a deepwater production sharing contract (PSC) with TotalEnergies and South Atlantic Petroleum (Sapetro) for petroleum prospecting licences (PPL) 2000 and 2001.
Also, on August 1, Gbenga Komolafe, the chief executive officer (CEO) of NUPRC, said the country has cumulatively produced over 4.4 billion barrels from deepwater operations, with contributory efforts from Shell, ExxonMobil, TotalEnergies, Agip, and Chevron.
FG PUSHING FOR MORE DEEPWATER INVESTMENTS WITH INCENTIVES
Komolafe cited government incentives or ongoing interventions, including zero hydrocarbon tax on deepwater fields under the Petroleum Industry Act (PIA), as well as presidential directives 40, 41, and 42.
He said the federal government intend to increase oil output from Nigeria’s deepwater oil fields by 810,000 barrels per day (bpd) through a new cluster and nodal development initiative.
“We have identified over 20 key deep water assets such as Owowo, Nsiko, Bolia, Aparo, Bonga South West, Doro, Sheki, Akpo West, and others. While some may lack scale individually, they can become viable if developed together,” he said.
Already, Nigeria has attracted more than $8 billion in investments in deepwater projects and gas final investment decisions (FIDs) within one year, according to Olu Verheijen, special adviser on energy to Tinubu, on May 14.
PETROBRAS’ HISTORY IN NIGERIA
In November 2017, Petrobras led an effort to sell Petrobras Oil and Gas BV (Petrobras Africa), involved in two deepwater oil exploration blocks off the coast of Nigeria.
The blocks, Akpo and Agbami producing fields, were operated by Total SA and Chevron Corporation, respectively.
The Brazilian state-controlled firm had 50 percent of the company, in a joint venture with BTG Pactual E&P B.V.
In 2020, the firm sold its shares to Canada’s Africa Oil Corporation for $1.45 billion, exiting Nigeria and, by extension, the African continent.
However, in 2023, Petrobras’s interest in Africa was rekindled after the company announced the acquisition of stakes in three exploration blocks in São Tomé and Príncipe, an African island nation.
‘MORE JOBS, FOREIGN INVESTMENTS, AND EXPERTISE’
Speaking on the imminent return of the company to Nigeria, Ayodele Oni, partner at Bloomfield Law Practice, said Petrobras’s imminent return to Nigeria could have a big impact.
As one of the world’s leading oil producers, he noted, the company possesses the expertise and technology required to enhance Nigeria’s oil output.
“This could mean more jobs, not just within the company but also in areas like logistics, maintenance, and services connected to oil production,” Oni said.
“Moreover, Petrobras’s comeback could attract significant foreign investment, sparking infrastructure and technological development while giving Nigeria’s economy a nice boost.”
He said their know-how in offshore and deepwater drilling could help diversify Nigeria’s energy sector, making it more resilient to global market changes.
“In addition, their presence might lead to valuable knowledge and technology sharing. This could help local workers gain new skills and sharpen Nigeria’s technical abilities in the oil industry,” Oni said.
HOW NIGERIA CAN REMAIN ATTRACTIVE IN A COMPETITIVE MARKET
Oyeyemi Oke, partner at AO2law, described the prospect of Petrobras’ potential return to Nigeria as exciting.
However, Oke said it is necessary for Nigeria to be an attractive market in Africa to attract such deals, considering other jurisdictions are competing for investments into their oil and gas sector.
“For example, Petrobras in 2023 re-entered Africa through acquisitions of assets in São Tomé, which means there are other viable options in Africa and Nigeria should ensure investments are guaranteed from a security, returns and policy consistency perspective,” he said.
“Considering the proximity of Nigeria to São Tomé, it becomes commercially sensible for a firm like Petrobras to look at investing in Nigeria, but then again, this is highly subject to the economics of doing business in Nigeria, hence the need for Nigeria to up its game.
“While the nature of entry of Petrobras into the Nigerian market remains unclear at the moment, it is necessary to emphasise that any award of oil assets needs to comply with the provisions of the Petroleum Industry Act with respect to an open and transparent bidding process.”
He stressed that the government must ensure the bidding process complies with Nigerian law.
Additionally, Oke said there are other structures that may facilitate a quick entry into the Nigerian market, such as financial, management, and technical services agreements with government-owned petroleum oil companies.
What Petrobras’ Potential Return
The impending return of Petrobras, which recorded an oil and gas production average of 2.91 million barrels of oil equivalent per day (boed) in the second quarter of 2025, comes at a period when Nigeria is looking to meet a crude oil production target of 2.5 million barrels per day (bpd) by 2026, and 10 billion standard cubic feet (bscf) of gas per day by 2030.
In the last two years, Nigeria’s oil production has increased from 1 million barrels per day (bpd) in 2023 to 1.8 million bpd in 2025, according to Heineken Lokpobiri, minister of state for petroleum resources (oil), in July.
Also, NUPRC said gas production is up from 6.91 billion standard cubic feet per day (bscfd) in 2023 to 7.59 bscfd as of July 2025.
Lagos Assembly Strongly Seeks Suspension Of Makoko Demolition
Lagos assembly strongly seeks suspension of Makoko demolition. The Lagos state house of assembly has called for the suspension of demolition activities in Makoko, Oko-Agbon and Shogunro waterfront communities following protests by displaced residents and growing public concern over the exercise.
The call was announced on Tuesday by Noheem Adams, chairman of an ad hoc committee set up by Mudashiru Obasa, speaker of the house, during a stakeholders’ meeting held at the Lateef Jakande auditorium.
Adams called on all state ministries to cease demolition work and promised compensation to the affected residents.
“On behalf of the speaker and all 40 members of the house, we are directing that all demolitions in Makoko, Oko-Agbon, and Shogunro communities should stop from today until further notice,” New Telegraph quoted Adams as saying.
He called for transparency by demanding the full list of taskforce members and the criteria used for engagement, insisting that residents must be actively involved in the process.
“That the taskforce that was constituted, we want to see the list of the taskforce because we want the residents to be duly involved and to be carried along. So we want to have the schedule of those task forces and the criteria for those that we are inviting,” Adams added.
Lagos Assembly
“To the residents of Makoko, Oko-Agbon and Shogunro communities, as your representatives, we are giving you all assurances that they will stop demolitions henceforth and there will be compensations for all those whose properties have been demolished.”
Stephen Ogundipe, member of the ad-hoc, said there is need for clear communication, adding that residents targeted for relocation or redevelopment must be informed of the government’s plans in advance.
Babatunde Olajide, special adviser to governor of Lagos on E-GIS and urban renewal, confirmed that $2 million had been earmarked since 2021 to transform Makoko into a modern, internationally compliant water city.
He said enumeration of affected properties is underway and reiterated the administration’s commitment to handling the situation with a human face, prioritizing resident safety and fair compensation.
Yusuf Sagra, baale of Makoko, described the assembly’s decision as a “word of peace,” while Orioye Ogungbure, another leader of the community, praised the “democratic responsiveness” of the government.
EFCC Arrests Kannywood Star, Samha Inuwa for Alleged Naira Mutilation In Viral Video
EFCC arrests Kannywood Star, Samha Inuwa for alleged naira mutilation in viral video. The Kano Zonal Directorate of the Economic and Financial Crimes Commission, EFCC, on Tuesday, February 3, 2026 arrested a Kannywood Star, Samha Inuwa over alleged Naira mutilation.
Inuwa was arrested following a viral video circulated on social media platforms where she was seen conspicuously cleaning mucus from her nose using Naira notes.
EFCC
Following the release of the viral video, the Commission swung into action by tracing and subsequently arrested her to answer questions.
She is currently being held at the Commission’s detention facility while investigation is ongoing.
The suspect will be charged to court upon conclusion of investigations.
Dele Oyewale
Head, Media & Publicity
February 3, 2026
Access Bank Gets New Board Chair Ifeyinwa Osime
Access Bank gets new board chair Ifeyinwa Osime. Access Bank Plc has appointed Ifeyinwa Osime as chair of the board of directors, following the retirement of Paul Usoro, on January 29.
Access Bank Plc has appointed Ifeyinwa Osime as chair of the board of directors, following the retirement of Paul Usoro, on January 29, according to a statement to the Nigerian Exchange Ltd. on Monday.
Ms Osime, a legal practitioner, joined Access Bank’s board in November 2019 as an independent non-executive director and had chaired its Human Resources and Sustainability Committee and the Governance, Nomination, and Remuneration Committee. This role made her contribute significantly to the bank’s corporate governance, leadership development, and sustainability initiatives.
Additionally, Ms Osime is a director at Ebudo Trust Ltd. and a partner at McPherson Legal Practitioners, where she advises on corporate and commercial matters and contributes to strategic leadership.
She is also a member of the Nigerian Bar Association, the Women Corporate Directors, Nigeria Chapter, and the Chartered Institute of Directors, Nigeria, where she serves on the Executive Committee of the Women Sectoral Group.
Access Bank Gets New Board Chair Ifeyinwa Osime
Beyond her professional responsibilities, Ms Osime is committed to mentoring youths and is actively involved in the Autism and Developmental Delays Support Community, reflecting her dedication to inclusion and social impact.
Speaking on her appointment, the group chairman, Aigboje Aig-lmoukhuede, said, “Mrs Osime is a principled and experienced leader with a deep understanding of the Bank’s strategy and values.
“She has demonstrated strong commitment to the bank’s vision and mission, and I am confident that, under her leadership, the bank will continue to advance its strategic objectives of delivering sustainable value to shareholders and other stakeholders in the pursuit of its vision to become the world’s most respected African bank.”
Mr Aig-lmoukhuede also congratulated Mr Usoro on the completion of his tenure and on his exemplary leadership, dedication, and significant contributions to the group, saying he remains a valued member of the Access family.
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