# Petrobras Profit Rises 21.5% as Brazil Studies Imports of Argentine Vaca Muerta Gas

Venezuela also signed a non-binding memorandum on ExxonMobil's return after 19 years, according to MercoPress, though Exxon's chief executive urged caution earlier this month.

- Published: 2026-11-11T05:05:05.566Z
- Canonical: https://polylog.news/2026-11-11/petrobras-profit-rises-21-5-as-brazil-studies-imports-of-arg
- Publisher: Polylog (Global desk)
- Section: markets
- Sources: [Agência Brasil](https://agenciabrasil.ebc.com.br/economia/noticia/2026-11/petrobras-tem-lucro-de-r-398-bilhoes-alta-de-215), [Folha (Mercado)](https://c-level.folha.uol.com.br/negocios/2026/11/ppsa-e-argentina-gyp-assinam-acordo-para-estudar-fornecimento-de-gas-de-vaca-muerta-ao-brasil.shtml), [MercoPress](https://en.mercopress.com/2026/11/10/venezuela-signs-a-memorandum-with-exxonmobil-for-the-oil-major-s-return-after-leaving-in-2007?utm_source=feed&utm_medium=rss&utm_content=main&utm_campaign=rss)

Petrobras reported third-quarter net profit of R$39.8 billion, up 21.5% from a year earlier, [Agência Brasil reported](https://agenciabrasil.ebc.com.br/economia/noticia/2026-11/petrobras-tem-lucro-de-r-398-bilhoes-alta-de-215). The quarter covered a period of war-driven crude prices. The state-controlled company's operating cash flow exceeded R$61 billion.

Brazil is also looking south for gas. Pré-Sal Petróleo SA (PPSA), the Brazilian state company that manages the country's share of pre-salt oil, signed a memorandum of understanding on Tuesday with Gas y Petróleo del Neuquén (GyP), an Argentine provincial state company, [Folha reported](https://c-level.folha.uol.com.br/negocios/2026/11/ppsa-e-argentina-gyp-assinam-acordo-para-estudar-fornecimento-de-gas-de-vaca-muerta-ao-brasil.shtml). The agreement is to assess supplying the Brazilian market with gas from Argentina's Vaca Muerta shale formation.

Further north, Venezuela signed a memorandum of understanding with ExxonMobil on Monday for the company's return, [MercoPress reported](https://en.mercopress.com/2026/11/10/venezuela-signs-a-memorandum-with-exxonmobil-for-the-oil-major-s-return-after-leaving-in-2007?utm_source=feed&utm_medium=rss&utm_content=main&utm_campaign=rss). Exxon left in 2007, after Hugo Chávez's government nationalized the last privately held oilfields. MercoPress notes that the document is not a contract. ExxonMobil has made no public statement on the signing that this desk could find. Its chief executive, Darren Woods, recently said Venezuela still needs significant reforms before the company commits major capital, according to [La Patilla](https://lapatilla.com/2026/11/02/chevron-acelera-en-venezuela-mientras-exxonmobil-pide-cautela/). La Patilla reported that Chevron is investing $7 billion in the country.

## What this means

Gulf war premiums have raised profits for Atlantic-basin producers and made South American supply more attractive to importers and investors. Petrobras's cash flow funds Brazil's state budget through dividends, which helps the federal fiscal position for as long as crude stays high. Argentine gas exports would earn dollars for a country that lacks them. The weak point is contract security. Venezuela offers some of the world's largest reserves but has seized foreign oil assets before, and a memorandum does not protect capital. Exxon's caution reflects the arbitration it pursued after the 2007 nationalization. The consensus treats the Venezuelan memorandum as Exxon's return. The record supports a slower path. The likelier outcome is that Chevron and smaller companies expand in Venezuela over the next year while Exxon keeps its exposure limited until a binding contract with legal protections is signed. In Brazil, expect Petrobras dividends to remain a major fiscal support while Brent holds near $90. A binding Exxon contract with an agreement to settle the company's old claims would prove the cautious reading wrong.

## What to watch

- Whether ExxonMobil confirms the Venezuelan memorandum and discloses any terms on its past arbitration claims. That would show whether the return is real.
- Petrobras's dividend announcement. A large payout would show the government drawing on war-driven profits to support the budget.
- Pipeline and pricing terms in any binding Vaca Muerta supply deal. They will decide whether Argentine gas can replace Bolivian and imported gas in Brazil.