Petrobras, CNPC Sign MoU

Brazil's state oil company Petrobras and China National Petroleum Corp have signed a memorandum of understanding to structure a strategic partnership.

The two companies will look to jointly evaluate opportunities in Brazil and abroad in areas of mutual interest in the oil and gas supply chain, including potential financing structuring, Petrobras said July 4.

“Strategic partnerships have the potential benefits of sharing risks, increasing investment capacity in the oil and gas supply chain, technological exchanges, and the enhancement of corporate governance,” Petrobras stated.

This move further increases CNPC’s activities in Brazil. Since 2013, Petrobras and CNPC have been partners in the Libra area, the first contract under the production-sharing agreement regime, in the Santos Basin pre-salt layer.

Shardul Sharma