Oil companies Petrobras of Brazil and China National Petroleum Corp. (CNPC) have agreed to begin negotiating a strategic partnership which would look into opportunities for investment in the oil and gas business in Brazil and elsewhere, RTT News reports.
The news agency says CNPC, which operates oil fields in Brazil, reaffirmed in a memorandum of understanding its interest in investing in the country and increasing its activity there.
The report says Petrobras told the stock market that the partnership would entail risk-sharing, technological exchanges and improvement of corporate governance.
CNPC taps and trades in oil, and processes and distributes it. The company has a presence in 70 countries.
CNPC and China National Offshore Oil Corp. are expected to be partners of Petrobras in the second and third rounds of bidding for rights to exploit oil in certain areas, which will be auctioned in October.