Petrobras, CNPC sign agreement

Brazil’s state-run oil giant Petrobras signed a memorandum of understanding with the China National Petroleum Corp to exploit energy resources in Brazil and abroad. In the statement, Petrobras said the deal will allow the two state oil companies to benefit from each other’s capacity and experience in oil and gas production. The agreement was signed by Petrobras President Pedro Parente and the vice-president of CNPC and president of PetroChina, Wang Dong jin. PetroChina is a listed arm of CNPC. Since 2013, Petrobras and CNPC have partnered to explore the Libra offshore oilfield in southeastern 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.