Petrobras, Shell partner for energy transition
Both companies signed a Memorandum of Understanding to identify new upstream business, decarbonization opportunities and social and environmental initiatives.
Petrobras and Shell signed a Memorandum of Understanding during CERAWeek, in Houston, to encourage discussion and collaboration between the companies.
Jean Paul Prates, the CEO of Petrobras, and Wael Sawan, the CEO of Shell, agreed the companies will work together on identifying potential upstream opportunities, sharing experience and best practices on reducing carbon emissions, social and environmental initiatives.
This non-binding agreement will last five years and 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).
“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 Prates.
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.
“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,” added Sawan.
Petrobras and Shell have a long history of working together on research and development into technology of mutual interest, having signed in 2020 a Strategic Technical Cooperation Agreement.
