Petrobras announced that it signed a memorandum of understanding with the China National Petroleum Corporation (CNPC) to exploit energy resources in Brazil and abroad. In the statement, Petrobras said that the deal will allow the two state oil companies to benefit from each other's capacity and experience in oil and gas production.
The MOU was signed by Petrobras President Pedro Parente and the vice president of CNPC and president of PetroChina, Wang Dongjin. PetroChina is a listed arm of CNPC.
Since 2013, Petrobras and CNPC have partnered to explore the Libra offshore oilfield in southeast Brazil, which is considered potentially the most valuable oilfield in Brazil by its government.
The agreement is key to establishing an arrangement in which both companies are expected to share risks and jointly contribute to investment.
Brazil and China bolstered ties this year with a joint launch of a 20-billion-U.S.-dollar fund on May 30 to finance development projects in Brazil, especially in infrastructure building.