Petrobras, Brazil's state-run oil producer, and Sinopec, China's second-largest oil company, have come to terms on a joint venture that will see the two companies partner to explore for oil off the coast of Northern Brazil. The agreements were completed during Brazilian President Dilma Rousseff's recent visit to China.
Sinopec (SNP), Asia's largest refiner, and Petrobras (PBR) signed a cooperation agreement last year for the possible joint development of the BM-PAMA-3 and BM-PAMA-3 blocks that Petrobras won in auctions in 2001 and 2004, according to Reuters.
China is Brazil's largest trading partner, but that relationship has recently become strained as Brazil copes with a rising currency, a situation that has come about due in large part to the trading relationship with China. China is major buyer of Brazilian iron ore and oil among other commodities.
Separately, Petrobras said it expects to resume an extended well test at the offshore Guara field after work on the well was stopped last month because of a ruptured pipe.