Chinese state-owned company Sinochem has signed a strategic cooperation agreement with Statoil for “cooperation and long term experience sharing” between the two companies.

The MOU follows a recent Peregrino transaction where Sinochem bought a 40% interest in the oilfield, which is located offshore Brazil.

In a statement, Sinochem said the agreement will deepen ties between the two oil companies in Brazil and elsewhere, and covers upstream and downstream operations.

Sinochem bought the Peregrino stake for $3.07bn. The field is to start production in early 2011.