Brazilian oil company Petrobras has signed a Letter Of Intent (LOI) with BP to jointly identify and evaluate business opportunities involving assets or ventures in Brazil and abroad.
This includes cooperation on upstream, downstream, gas transportation and marketing, LNG, oil trading, lubricants, aviation fuel, power generation and distribution, renewables, technology and low carbon initiatives, with the purpose of developing a potential strategic alliance between the companies, Petrobras said on Tuesday.
This LOI was signed in London, on October 18, 2017, by Jorge Celestino, Petrobras’ Chief Refining and Natural Gas Executive Officer, and Bernard Looney, BP’s Upstream Chief Executive.
As one of the steps towards this collaboration, the companies have participated together on the ANP’s third bidding round under the production sharing regime, and have acquired exploration and production rights for the Alto do Cabo Frio block, in a consortia 50%-50%, and Peroba Block, jointly with CNODC, a subsidiary of CNPC, in a consortia 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, as announced on July 4, 2017.
For Petrobras, the achievement of partnerships is an important strategy of the 2017-2021 Business and Management Plan, the company explained. Strategic partnerships have the potential benefits of sharing risks, increasing investment capacity in the oil and gas supply chain, technological exchanges, and the enhancement of corporate governance, Petrobras concluded.