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Petrobras and CNPC sign agreement for investment in Brazil

Petrobras and CNPC sign agreement for investment in Brazil

Jul 05, 2017
3 min read
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Brazil’s Petrobras and China National Petroleum Corporation (CNPC) have signed a memorandum of understanding to form a strategic partnership aimed at evaluating investment opportunities in the oil and gas sector in Brazil and abroad.

“The companies agree to jointly evaluate opportunities in Brazil and abroad in key areas of mutual interest, benefiting from their skills and experiences in all segments of the oil and gas supply chain, including potential financial structuring,” Petrobras said Tuesday in a statement.

The agreement was signed on Tuesday in Beijing by Petrobras chief executive Pedro Parente and CNPC vice president Wang Dongjin.

Petrobras and CNPC are already partnered in the development of the Libra field.

Petrobras holds a 40 per cent operating stake in Libra and CNPC a 10 per cent working interest. Another Chinese state-owned firm, CNOOC, holds another 10 per cent. Shell and Total each hold 20 per cent. The field is expected to start producing crude through early well tests later this month.

"For CNPC, the partnership with Petrobras reinforces its interest in investing and increasing its activities in Brazil," Petrobras said.

From Beijing, CNPC, which also operates oil fields in Brazil, at the Libra pre-salt area, reaffirmed its interest in investing and increasing its activities in the country. In a statement to the market, Petrobras informed that the agreement includes risk sharing, technological exchange, and governance strengthening.

CNPC is China's largest integrated oil and gas corporation operating in exploitation, raw material processing, fuel distribution, marketing, trading, engineering, and equipment manufacturing in 70 countries.

CNPC and CNOOC are expected to be Petrobras' partners in the second and third rounds of bidding for pre-salt areas that the National Petroleum, Natural Gas and Biofuels Agency (ANP) will hold in October.

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