Norway’s Statoil and Brazil’s Petrobras have signed a memorandum of understanding (MoU) by which they aim to strengthen their cooperation in Brazil.

The intention of the MoU is to evaluate joint participation in future tenders for exploration areas and to increase upstream collaboration in producing fields in the Santos and Campos offshore basins.

The agreement also sets out a potential framework for cooperation on value creating opportunities in the gas value chain. The agreement was signed by Petrobras’ president and CEO Pedro Parente and Statoil’s CEO Eldar Sætre during the ONS 2016 conference in Stavanger.

It follows the agreement in July 2016 whereby Statoil acquired Petrobras’ 66% operated interest of the BM-S-8 offshore license in the Santos basin, subject to government approval.

“This MoU reflects our long-term commitment to Brazil and is a result of our strong and long-standing relationship with Petrobras. Collaboration with partners like Petrobras, a company well-known for its technical expertise and profound knowledge about one of our core strategic areas, represents an excellent opportunity for us. We hope that this will result in significant value creation potential for both parties”, says Statoil CEO, Eldar Sætre.

Petrobras and Statoil through this agreement will continue their exploration strategic alliance, with the intent to define opportunities in the pre-salt polygon of the Santos and Campos basin.

The companies aim to capture value through application of technology and simplification of operational activities. Currently, Petrobras and Statoil are partners in 13 blocks in either exploration or production; 10 in Brazil and three abroad.

“We are moving into a strategic partnership that will be beneficial for both companies. Statoil has very high levels of oil recovery in their producing fields, for example, and we will have access to this experience and know-how through a partner, with obvious benefits for both sides”, says the recently appointed Petrobras CEO, Pedro Parente.

The agreement has a horizon of two years, and the joint activities undertaken will depend on negotiations following the signing of the document.