Petrobras, BP explore strategic alliance

Petrobras announced the signing of a Letter Of Intent (LOI) with UK-based BP 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.

This LOI was signed in London, on October 18, 2017, by Mr. Jorge Celestino, Petrobras’ Chief Refining and Natural Gas Executive Officer, and Mr. Bernard Looney, BP’s Upstream Chief Executive.

The cooperation between the two companies will include collaboration on upstream, downstream, gas transportation and marketing, LNG, oil trading, lubricants, aviation fuel, power generation and distribution, renewables, technology and low carbon initiatives.

The companies have also participated together on the ANP’s (Brazil’s Brazil’s offshore regulator)  third bidding round and have acquired exploration and production rights for the Alto do Cabo Frio block, with a share of 50%-50%, and Peroba Block, jointly with CNODC, a subsidiary of CNPC, in a share of 40% Petrobras, 40% BP and 20% CNODC.

On October, Shell announced the acquisition of three 35-year production sharing contracts for pre-salt blocks located in the Santos Basin, from the second bidding round of ANP.

These blocks include a block adjacent to Shell’s Gato do Mato field (Shell 80% operating, Total 20%), a now unitized area to the Sapinhoá field (Petrobras 45% operating, Shell 30%, Repsol 25%) and the new Alto de Cabo Frio – West block (Shell 55% operating, Qatar Petroleum 25%, CNOOC Limited 20%).