Petrobras Eyes Africa for Expansion
In a wide-ranging interview with Reuters, Petrobras (PETR4) CEO Magda Chambriard revelead that the Brazilian state-controlled oil giant is looking to expand into promising emerging markets. To be more precise, CEO Chambriard declared that the company’s future growth will probably come from Africa. This strategic move represents a 180-degree turn from earlier when Petrobras was divesting from its overseas operations to focus on its home market.
In the interview, CEO Chambriard declared that the Cote d’Ivoire has ‘rolled out the red carpet’ for Petrobras by giving preference to the company to acquire nine offshore blocks. At the same time, Petrobras is pursuing opportunities in other oil-rich countries in Africa, such as Angola, Nigeria and Namibia.
In 2023, Petrobras acquired a stake in an offshore oil field in South Africa. In 2024, it bought an interest in another block in Sao Tome and Principe. In Namibia, Petrobras was outbidded by France’s TotalEnergies for a stake in the Mopane offshore field of Galp Energia, but Petronas is not giving up.
The new strategy of Petrobras is in line with the ambitions of Brazilian President Inacio Lula who is pushing Brazilian companies to expand globally and deliver more revenues. With more revenues, Lula hopes to be able to fuel the growth of the Brazilian economy.
On its home turf, Petronas plans to expand its fertilizer production with the resumption of the operation at two of its plants in the states of Sergipe and Bahla by the end of 2025. Petrobras is also looking to increase its share in Braskem where it holds a 47% stake. Chambriard states that Petrobras is seeking to increase its shareholding in Braskem in order to have ‘more say in the decision-making process to guarantee better synergies’.
Some observers note that this push toward fossil fuels appear to be in contradiction with Brazil’s image of being a champion in the fight against #ClimateChange. It is worth noting that Brazil is hosting the #COP30 global climate summit toward the end of 2025 and is a significant producer of bioethanol.
Last but not least, Petrobas is also looking to the emerging market of India. The auction of oil blocks in India is coming up in July 2025 and Petronas intends to place a bid to gain an early entry into this strategic market.