President Luiz Inácio Lula da Silva plans to request U.S. approval for Petrobras to resume oil exploration and production operations in Venezuela during a bilateral meeting with President Donald Trump scheduled for late March in Washington, D.C. Discussions include a potential debt-to-equity swap involving Venezuela’s unpaid $1.8 billion debt to Brazil and addressing U.S. sanctions impacting Cuba’s oil imports, signaling Brazil’s attempt to reposition Petrobras in Latin America’s shifting energy landscape.
President Lula is set to propose at the upcoming Washington meeting that Petrobras be allowed to re-enter the Venezuelan oil sector following the recent geopolitical shift caused by the United States’ capture of Nicolás Maduro and assumption of control over Venezuela’s oil assets. Historically, Petrobras withdrew from Venezuela amid economic collapse and U.S. sanctions on the Maduro regime. The Brazilian government is considering converting Venezuela’s outstanding debt, approximately $1.8 billion linked to loans from BNDES, into equity stakes in Venezuelan oil assets as a mechanism to mitigate the financial exposure and facilitate Petrobras’ return. Key targets for Petrobras include light oil production in Lake Maracaibo, heavy crude extraction in the Orinoco basin, and rehabilitation of deteriorated refineries. Approval from Washington is critical due to ongoing sanctions; the U.S. has already authorized companies such as Chevron, BP, Shell, Eni, and Repsol to resume Venezuelan operations without facing penalties, and Brazil aims to secure similar status for Petrobras.
Beyond Venezuela, Lula intends to discuss the adverse effects of U.S. tariffs on countries supplying oil to Cuba, which have deepened the island’s economic crisis by disrupting fuel availability, impacting tourism and essential services. Brazil plans to send humanitarian aid to Cuba and will likely urge the U.S. to consider the risks of escalating a humanitarian crisis in the Caribbean region.
Petrobras’ international expansion aligns with its strategy to offset impending declines in Brazil’s pre-salt production expected after 2030 by exploring emerging opportunities in Latin America and Africa. Brazil’s diplomatic maneuvering with the U.S. to enable Petrobras’ re-entry into Venezuela reflects broader geopolitical recalibrations in regional energy markets and the strategic importance of Venezuelan oil reserves.
