Petrobras (#PBR), the state-owned oil giant and Latin America's largest player, announced last Friday, April 17, that it will be investing in offshore exploration in West Africa.

Petrobras announced that it has signed an agreement to acquire an interest and assume operatorship of Block 3, offshore São Tomé and Príncipe, Africa, alongside Africa's largest private player, Oranto Petroleum, owned by Nigerian billionaire Arthur Eze.

Petrobras positions itself as a strategic player, having shown interest in investing in offshore exploration using its expertise in deep-water oil drilling. This is the first official announcement of an acquisition agreement since 2024, when the company initially expressed interest in investing in the African continent.

São Tomé and Príncipe is seen as one of the most promising countries for new oil discoveries. Its EEZ (Exclusive Economic Zone) is located between three major oil producers in the region: the Niger Delta to the north, the Douala and Rio Muni basins (Equatorial Guinea and Cameroon) to the east, and the salt basins of Gabon, which have very similar characteristics to the pre-salt of eastern Brazil—the biggest oil-producing region for both Petrobras and Brazil.

The agreement for the block in São Tomé and Príncipe follows the company’s 2026-2030 Business Plan, and the transaction is subject to the fulfillment of precedent conditions, including applicable governmental and regulatory approvals in São Tomé and Príncipe.