Petrobras CEO: Africa will be the main exploration region for Petrobras outside Brazil.

Petrobras wants to develop Africa as its primary region outside Brazil. The CEO of the state-run oil company said this in a broad interview on Thursday.

Petrobras CEO Magda Chabriard said that Ivory Coast extended the "red-carpet" to Petrobras when it granted the company the preference for buying nine offshore exploration blocks on Wednesday.

She said that Nigeria, Angola and Namibia also expressed an interest in working with Brazil's giant.

Chambriard said, "We are experts on the eastern margins of Brazil," citing similar geological features between the region and Africa. "The correlation between Brazil's eastern margin and Africa is unmistakable, so we must go to Africa."

Petrobras, in recent years, has shown interest in purchasing stakes in oil assets overseas, particularly in Africa. It is looking to increase reserves, while facing delays in obtaining permits for drilling new oil off of the coasts of the Amazon rainforest.

Chambriard stated that Petrobras also wants to explore the coast of India, and will be participating in a upcoming auction for oil blocks scheduled for July.

Petrobras plans to return to Africa mark a return after the company divested its assets in the area under previous governments. This was part of a broader plan which focused the company on high-productivity zones in Brazil's Pre-salt Fields.

Chambriard has a strategy that includes exploring new oil fields to balance President Luiz inacio Lula’s desire to use Petrobras as a vehicle to boost the Brazilian economy, while also delivering profit to investors. This is all done with the challenge of the lower oil price globally.

Petrobras is a cornerstone in Brazil's economic system. It's also the source of tensions within Lula's government, which aims at leveraging oil revenues to spur economic growth, while showcasing Brazil as a leader in the fight against climate changes.

Environmental permits have been delayed in obtaining for the company's plans of drilling for oil in the Foz do Amazonas area, off the coasts of the Amazon rainforest.

Chambriard said she believed the company would clear the final step in order to get a drilling permit in the area in the second half July.

The company has already begun implementing its plans for Africa.

Chambriard stated that in 2023 it acquired a stake on an offshore oilfield in South Africa, and in 2024, it acquired an interest in a field in the island nation Sao Tome-and-Pricipe where it plans to drill a hole this year.

Chambriard has said that despite its recent efforts, TotalEnergies, a French company, outbid the company for a stake in the Mopane offshore field in Namibia, discovered by Galp Energia.

Chambriard said, "We hope to invite" Mopane to develop, but did not give any further details.

Local Investment Plans

Chambriard stated that lower Brent crude oil prices have led the company to reduce costs and simplify the projects in the upcoming Petrobras strategic plan for 2026-2030.

Chambriard's announcement of austerity during the company's earnings call last month with analysts pleased investors. Chambriard didn't clarify if cost-cutting measures would affect the company’s investment plans.

A retreat from investment plans would be a dramatic reversal since Lula's election in 2023, when the Brazilian oil company was pushed to invest more for Brazil's economic growth.

Chambriard stated that the firm will finally expand its role in Brazil’s fertilizer production as it anticipates resuming operations at two plants in the state of Bahia and Sergipe by the end the year.

The CEO confirmed that his firm was unhappy with its current level of control over Braskem petrochemicals and that it is seeking changes to the shareholders agreement which could give Braskem more power.

Petrobras owns a 47% stake in Braskem, but only appointed four out of 11 directors and one director, which it deemed insufficient.

Chambriard, without revealing any further details, said that Petrobras does not want to have a majority of the company, but wants more control in order to "guarantee" synergies.

Chambriard called Braskem a "very valuable asset". She added that "from a current perspective, Braskem’s management isn't what we want." Reporting by Rodrigo Viga Gaier and Marta Nogueira; Editing and production by Natalia Siniawski and Marguerita Choy.

(source: Reuters)