Our CEO, Pedro Parente, and the vice president of CNPC and CEO of PetroChina, Wang Dongjin, signed a Memorandum of Understanding in Beijing to begin negotiations for a strategic partnership.
Based on this Memorandum of Understanding, the companies undertake to jointly evaluate opportunities in Brazil and abroad in key areas of mutual interest, benefiting from their capabilities and experience in all segments of the oil and gas chain, including the potential structuring of funding.
To us, partnerships are an important strategy foreseen under the 2017-2021 Business and Management Plan. Strategic partnerships have the potential benefits of sharing risks, increasing capacity for investments in the oil and gas chain, of technological exchanges, and of strengthening corporate governance. To CNPC, partnering with us reinforces their interest in investing in and increasing their activities in Brazil.
Petrobras and CNPC: Since 2013, we have been partners with CNPC in the Libra area, the first contract signed under the production sharing system, which is located in the Santos Basin pre-salt cluster.
CNPC is China's largest integrated O&G corporation, with activities in the upstream, midstream, downstream, trade, and marketing areas, and in petroleum service provision, engineering, construction, and equipment manufacturing. CNPC has operations in more than 70 countries.