The recent signing of the Memorandum of Understanding between CNPC and Petrobras will allow companies to combine their skill set and evaluate new business opportunities in Brazil and in other countries. This will give companies the chance to reshape their entire supply chain by incorporating their investment structures.

The partnership increases CNPC's interest in further advancing its activities in Brazil and, it is easy to remind investors, that the two companies have been partners since 2013 and operate in the pre-salt Libra area in the Santos Basin.

State-owned China National Petroleum Corporation (CNPC) is the largest owner of Chinese oil and gas giant PetroChina Company Limited in strategic partnerships. Petrobras is the largest integrated oil and gas company in Latin America. It is involved in the exploration, production, refining, sale of fuels and transportation of oil. The company, based in Rio de Janeiro, has been dominating Brazil's oil and gas sector for more than 60 years and produces most of Brazil's crude oil and natural gas, as well as owning almost 100% of the country's refining capacity .

New partners and divestment

The partnership with CNPC is in line with Petrobras' Business and Management Plan for 2017-2021, which emphasizes the development of deepwater production. This will help Petrobras share operational and commercial risks. It will also increase the investment capacity for both companies and to improve their corporate governance. The exchange of technology, another feature of the agreement is to help both Petrobras and CNPC with its refining / oil and gas supply chain.

According to the strategy of partnerships and asset sales, Petrobras expects third-party investments above US $ 40 billion over the next 10 years.

Stop importing refined 

Petrobras can produce almost 3 million barrels of oil equivalent per day shortly, but is tied to the construction of the Comperj petrochemical project in Rio de Janeiro, where the refining capacity of the two planned refineries can reach 300,000 barrels per day. The new plants require an additional investment of approximately $ 4 billion and since the last decade the project has had a total investment of $ 13 billion. The partnership with CNPC can help Petrobras finalize the project.