Brazil's Petrobras and Mexico's Pemex negotiate second cooperation deal

Brazilian state-controlled oil company Petrobras and its Mexican counterpart Pemex are in discussions for a second cooperation agreement, aiming to extend their partnership beyond exploration and production into refining and fuel sales. The initial agreement, signed in June, focused on evaluating and developing hydrocarbon exploration and production projects in Mexican waters of the Gulf of Mexico. The proposed second agreement will cover joint actions in refining, processing, and marketing of derivatives, as well as exploring opportunities in ethanol and biodiesel. Petrobras President Magda Chambriard stated that Mexico is a priority country for the company and that the discussions have been amicable due to the "brotherly" relationship between the two nations and their state-owned enterprises' commitment to their populations. She highlighted the immense potential for both countries and companies. Petrobras' Director for Refining, William França, noted that the partnership in refining and petrochemicals could significantly boost ethane production and encourage cooperation in decarbonization, biofuels, energy transition, and efficiency. Petrobras also aims to leverage its expertise in pre-salt exploration, a deep-water oil reserve beneath a thick salt layer, to assess Mexico's potential in similar geological formations in the Gulf of Mexico, pending detailed seismic data.

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The partnership with Pemex has two aspects. A first to jointly explore and produce in Mexican waters of the Gulf of Mexico, both shallow and deep, and a second to cooperate in refining and market actions.