Petrobras, CNPC forging oil and gas alliance

Tuesday, July 4, 2017

Brazilian state-run energy giant Petrobras said Tuesday it signed a memorandum of understanding with China's CNPC for cooperation in the oil and gas sector.

The announcement came as Petrobras CEO Pedro Parente met with CNPC vice president Wang Dongjin in Beijing, marking the "start of negotiations for a strategic alliance," the Rio de Janeiro-based firm said in a statement.

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"The companies have agreed to jointly evaluate opportunities in Brazil and abroad in key areas of mutual interest, benefiting from capabilities and experiences in all segments of the oil and gas chain, including potential structuring of financing," the statement said.

Petrobras has also signed cooperation agreements with Norway's Statoil and France's Total in the past year.

CNPC's Brazil interests include a 10% stake in the Santos basin's Libra pre-salt field, where a production pilot is due to begin this month.