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.