Petrobras and Shell sign partnership for exploration and energy transition

Petrobras signed a memorandum of understanding with Shell to promote collaboration between the companies, including exploration opportunities inside and outside the pre-salt and energy transition efforts, the Brazilian oil company said in a statement this Thursday (9).

The agreement, signed between the chief executive of Petrobras, Jean Paul Prates, and Wael Sawan, who heads Shell, will last for five years, according to the statement.

The agreement comes after Prates also met this week with executives from other major oil companies, such as BP, Petronas, TotalEnergies and Equinor, at the CERAWeek conference, in Houston, to evaluate potential future partnerships.

In the case of Shell, the agreement may include initiatives in the exploration of the Equatorial Margin, a new frontier where Petrobras plans to advance, in addition to efforts in energy transition, with an emphasis on renewables and Carbon Capture, Use and Storage (CCUS), said the company.

“With this partnership, the companies recognize that synergies in E&P projects that include decarbonization initiatives are strategic in a low-carbon economy scenario and reinforce the intention to seek new opportunities for partnerships in Brazil and abroad”, said the company.

“On the environmental front, Petrobras and Shell intend to establish projects to preserve and restore biodiversity, with the aim of issuing credits to offset carbon emissions. In addition, the companies will also seek to work together on social investment projects.”

Petrobras pondered that only after the completion of technical analyzes by a multidisciplinary group, projects arising from the agreement will have official cost and return estimates, necessary for future approval by internal approval bodies, in accordance with the company’s governance.