Petroleos Mexicanos (Pemex) and Petroleo Brasileiro SA (Petrobras) have formally agreed to pursue cooperative activity under a non-binding memorandum of understanding covering exploration, production and refining operations, company executives said at an event in Rio de Janeiro.
The scope of the memorandum includes joint work in both shallow and deepwater zones of the Gulf of Mexico. In addition, the agreement encompasses collaboration on refining operations, natural gas, petrochemicals and other related sectors. Both national oil companies identified the expansion of their reserves as a central objective of the partnership.
Petrobras Chief Executive Officer Magda Chambriard said the memorandum will initiate closer cooperation on exploring Mexico's deepwater resources. She also noted that exploration activity under the agreement will not be confined to the Gulf.
The memorandum unites the two largest oil companies in Latin America. The document is non-binding in nature, creating a framework for cooperation rather than a firm set of commitments. Pemex currently faces a set of internal challenges that the companies acknowledged as part of the context for the memorandum - including large debts, declining output and operational inefficiencies. Petrobras has described the move as part of its effort to find drilling locations beyond Brazil in order to secure reserves for coming decades.
The announcement in Rio de Janeiro places both firms on a path of potential joint activity across exploration and downstream areas. The agreement covers multiple technical and commercial areas - from deepwater exploration to refining and petrochemical development - but, as a memorandum of understanding, its next steps will depend on subsequent agreements and project-level decisions.
Sectors mentioned: upstream oil exploration (shallow and deepwater), refining, natural gas, petrochemicals.