Brazilian giant Petrobras has signed a memorandum of co-operation with China National Offshore Oil Company (CNOOC), which will see the two companies teaming up for oil and gas developments.

The agreement signed in Beijing on Tuesday obligates the duo to enhance collaboration in oil and gas exploration and development, refining and chemical engineering, offshore engineering, oilfield services, green and low-carbon initiatives, as well as the crude oil trade.

This agreement stands as a significant milestone in the ongoing development of oil and gas co-operation between CNOOC and Petrobras, marking a remarkable achievement in fostering deeper practical ties between China and Brazil, CNOOC said.

CNOOC’s listed arm, CNOOC Ltd, holds respective 7.34% and 9.65% stakes in Petrobras’ Buzios and Mero fields, both are deep-water assets offshore Brazil.

Late last year, CNOOC signed up to Petrobras’ natural gas transmission system in the Santos basin, becoming the first foreign company in Brazil to independently engage in natural gas sales.

CNOOC Ltd said in a recent earnings report that the Buzios-5 project in Brazil’s pre-salt basin, which came on stream earlier this year, contributed tangibly to the increase of its oil and gas production in the first half of 2023.

Peak production from Buzios-5 contributed more than 200,000 barrels of oil equivalent per day at a gross level, the company said.