Brazil, Mexico oil giants to explore joint energy projects

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Rio De Janeiro: Petrobras, Brazil's state-controlled oil company, and Pemex, the Mexican  oil company, have signed a memorandum of understanding (MoU) to pursue joint projects in oil exploration, production, refining, and other energy sectors, a major step toward strengthening energy cooperation between Latin America's two largest state-owned oil firms.

The partnership focuses on examining potential for shallow and deepwater exploration in the Gulf of Mexico, revitalising existing oil fields, and leveraging Petrobras' ultra-deepwater drilling experience. The firms will also work together in refining, natural gas, petrochemicals, fertilisers, carbon capture and storage, energy efficiency, and low-carbon fuels.

Petrobras CEO Magda Chambriard said the alliance might help Mexico's offshore resources reach their full potential, while Pemex CEO Juan Carlos Carpio Fragoso called the deal as the beginning of a new chapter in bilateral energy cooperation.

The MoU is valid for two years with the possibility to renew. It is non-binding and does not commit either company to making investments or forming a joint venture; any future projects will require separate agreements and regulatory clearances.