Statoil and Petrobras Sign Biofuels Agreement

Norwegian oil and gas company Statoil and Brazilian oil company Petrobras have signed a long-term strategic collaboration agreement for exploration and production, including biofuel development.

The new collaboration involves both companies studying several oil and gas business development opportunities, in Brazil and internationally.

Statoil says its collaboration with Petrobras will aid opportunities for development in technology and bioethanol, which the company says "will help make biofuels an even more sustainable supplement to fossil fuels in the transport sector."

The companies presently have several partnership agreements within exploration and production in Brazil, Angola, Nigeria and the Gulf of Mexico. They have also formed a joint technology partnership in 2003 that includes drilling, exploration and subsea operations.

Reported by Ozge Ibrahim