The companies will also look to work together on social investment projects. [Image: Petrobras]

By Shardul Sharma

Petrobras and Shell have signed a memorandum of understanding to collaborate on upstream, carbon emissions, and environmental initiatives, Petrobras said on March 9. The agreement will last five years.

This non-binding agreement focuses on potential exploration opportunities in and beyond the pre-salt, including the Equatorial Margin.  It also contemplates energy transition efforts, with an emphasis on renewables and carbon capture, utilisation and storage (CCUS).

On the environmental front, Petrobras and Shell aim to establish projects to preserve and restore biodiversity, with the goal of issuing credits to offset carbon emissions. In addition, the companies will also look to work together on social investment projects.
“Being able to rely on partners, such as Shell, is vital for Petrobras’s future plans, because partners can add their strength to areas where the company is looking for profitable diversification, such as renewables and hydrogen. We will be looking to learn from the main players as we lead Petrobras towards a fair energy transition,” said Petrobras CEO Jean Paul Prates.
“As Shell celebrates our 110th anniversary of working in Brazil, this exciting agreement reinforces both the significance of the country within our global portfolio, and our strong partnership with Petrobras,” said Wael Sawan, Shell’s CEO.

Petrobras and Shell signed a strategic technical cooperation agreement in 2020. Currently, the companies are working together on assets in Brazil, like, Tupi, Sapinhoá, Mero, Atapu, among others.