Petrobras SA (NYSE: PBR) has signed a letter of intent (LOI) with BP Plc (NYSE: BP), the company said on Oct. 31.
Both BP and Petrobras have agreed to jointly identify and evaluate business opportunities involving assets or ventures in Brazil and abroad with the purpose of developing a potential strategic alliance between the companies.
BP and Petrobras agreed to cooperate on upstream, downstream, gas transportation and marketing, LNG, oil trading, lubricants, aviation fuel, power generation and distribution, renewables, technology and low carbon initiatives.
This LOI was signed in London on Oct. 18 by Jorge Celestino, Petrobras’ CEO of refining and natural gas, and Bernard Looney, BP’s Upstream CEO.
As an important step, the companies have successfully participated together on the ANP’s third bidding round under the production sharing regime. They also acquired E&P rights for the Alto do Cabo Frio Block, in a consortia 50% and 50%. Also with CNPC affiliate CNODC for the Peroba Block in a consortium of 40% Petrobras, 40% BP and 20% CNODC.
Additionally, Petrobras and CNPC have also signed a memorandum of understanding with the goal to form a comprehensive strategic alliance, on July 4, 2017.
For Petrobras, the achievement of partnerships is an important strategy for its 2017 to 2021 business and management plan.
Recommended Reading
US Drillers Add Oil, Gas Rigs for Second Week in a Row
2024-01-26 - The oil and gas rig count, an early indicator of future output, rose by one to 621 in the week to Jan. 26.
Second Light Oil Discovery in Mopane-1X Well
2024-01-26 - Galp Energia's Avo-2 target in the Mopane-1X well offshore Namibia delivers second significant column of light oil.
CNOOC Sets Increased 2024-2026 Production Targets
2024-01-25 - CNOOC Ltd. plans on $17.5B capex in 2024, with 63% of that dedicated to project development.
E&P Highlights: Jan. 29, 2024
2024-01-29 - Here’s a roundup of the latest E&P headlines, including activity at the Ichthys Field offshore Australia and new contract awards.
Seadrill Awarded $97.5 Million in Drillship Contracts
2024-01-30 - Seadrill will also resume management services for its West Auriga drillship earlier than anticipated.