Brazilian state-run company Petrobras and Shell have agreed to jointly identify potential opportunities to explore and produce crude and natural gas.

As per the memorandum of understanding (MoU), the firms will focus on oil and gas exploration opportunities in and beyond the pre-salt, including the Equatorial Margin.

Furthermore, Petrobras and Shell will also share experiences and best practices in carbon emissions reduction and socio-environmental initiatives.

The five-year partnership will also cover renewable energy and carbon capture, utilisation, and storage (CCUS).

Regarding the environment, the two companies plan to launch projects to preserve and restore biodiversity, as well as work on social investment projects.

In a press statement, Petrobras said: “This partnership demonstrates that both companies appreciate there are strategic synergies in exploration and production projects that include decarbonisation initiatives, which are important in transitioning to a low-carbon economy, and it reinforces their intention to seek new opportunities together in Brazil and abroad.”

Committees with representatives from Petrobras and Shell will be set up for monitoring the progress in various studies and discussions.

Earlier this year, Petrobras divested its stake in the Albacora Leste heavy oil deepwater field in Brazil to Petro Rio Jaguar Petróleo (PetroRio) for a cash payment of $1.63bn.

The 511.56km² Albacora Leste field is located in the northern area of the Campos basin, in water depths ranging between 1,000m to 2,150m.