Jean Paul Prates, the CEO of Petrobras, and Wael Sawan, the CEO of Shell signed a Memorandum of Understanding, during CERAWeek, in Houston, in order to encourage discussion and collaboration between the companies. Both CEOs agreed the companies will work together on identifying potential upstream opportunities, sharing experience and best practices on reducing carbon emissions, social and environmental initiatives. 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, Utilization, 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.
This partnership demonstrates that both companies appreciate there are strategic synergies in E&P projects that include decarbonization initiatives, which are important in transitioning to a low-carbon economy and it reinforces their intention to seek new opportunities together in Brazil and elsewhere. Committees with representatives from both companies will be set up to monitor the progress of the various studies and discussions.
