Petrobras evaluates Venezuela’s oil potential cautiously amid risks, while prioritizing Africa expansion to diversify exploration and ensure long-term production growth.
Brazil’s state-controlled energy giant Petrobras is preparing to evaluate potential investment opportunities in neighboring Venezuela, according to its head of Exploration and Production, Sylvia Anjos. In a recent interview, she indicated that while the Venezuelan oil sector offers significant untapped potential, it also presents a complex mix of risks that require careful consideration before any concrete moves are made.
Anjos emphasized that Venezuela possesses vast hydrocarbon reserves and remains one of the most resource-rich oil-producing nations globally. However, she cautioned that entering this market is far from straightforward. Political uncertainty, regulatory challenges, and environmental concerns all contribute to a high-risk investment landscape. One particular issue highlighted was the deteriorated condition of Lake Maracaibo, a historically important oil-producing region that has suffered extensive pollution over decades of extraction activities. Operating in such an environmentally sensitive and degraded area, she noted, could undermine Petrobras’ sustainability commitments and damage its environmental reputation.
Despite acknowledging Venezuela’s long-term potential, Anjos expressed skepticism about any rapid recovery in the country’s oil production. She does not foresee a meaningful increase in output in the near future, suggesting that Venezuela is unlikely to emerge as a competitive threat to Petrobras’ current operations. This assessment reflects broader industry concerns about infrastructure deterioration, underinvestment, and ongoing geopolitical constraints that continue to limit Venezuela’s production capacity.
At the same time, Petrobras is not solely focused on South America for its expansion strategy. The company is actively seeking to diversify its exploration portfolio, with a growing emphasis on Africa. Anjos pointed to countries such as Ghana, Ivory Coast, and Namibia as key areas of interest. In fact, Petrobras has already taken a step forward in this direction by securing an exploration license in Namibia, signaling its intent to strengthen its presence on the African continent.
This strategic pivot aligns with earlier statements from Petrobras’ Chief Executive Officer, Magda Chambriard, who has previously outlined plans to make Africa the company’s primary exploration hub outside Brazil. By expanding into new offshore basins and frontier regions, Petrobras aims to balance risk, access new reserves, and ensure long-term production growth.
Overall, Petrobras’ approach reflects a cautious but opportunistic strategy. While Venezuela represents a potentially lucrative yet uncertain prospect, the company appears more actively committed to building a diversified global exploration portfolio, particularly in Africa. This dual-track strategy allows Petrobras to evaluate high-risk, high-reward opportunities while simultaneously investing in regions that may offer more stable and scalable growth prospects.
