Sheinbaum and Lula Discuss Collaboration Between Pemex and Petrobras

President Claudia Sheinbaum and the President of Brazil, Luiz Inácio Lula da Silva, reviewed the progress of the bilateral agenda, including energy cooperation between Mexico and Brazil. Both leaders announced this on their respective X (formerly Twitter) accounts.

What did Sheinbaum and Lula discuss?

The leaders held a 40-minute video call to review the cooperation and political dialogue commitments undertaken by both governments. In the energy sector, they highlighted advancements in an agenda that spans from collaboration in biofuels to cooperation between Pemex and Petrobras.

Collaboration between these two state-owned enterprises is not new, as this announcement comes almost two months after a Memorandum of Understanding was signed.

The conversation also included strengthening the bilateral commercial legal framework and progress in health, tourism, public governance, science, technology, and innovation. Furthermore, both governments agreed to advance towards the VI Meeting of the Mexico-Brazil Binational Commission, a mechanism aimed at finalizing various cooperation initiatives.

Memorandum of Understanding Between Pemex and Petrobras, What Does it Say?

The between Pemex and Petrobras contemplates joint opportunities in hydrocarbon exploration and production, including the revitalization of mature fields, seismic reprocessing, and projects in deep and ultra-deep waters, particularly in the Gulf of Mexico. It also covers heavy and extra-heavy oil areas and the exchange of knowledge, technologies, and best practices, leveraging Petrobras’s expertise in offshore operations.

The cooperation extends to industrial processes such as refining, petrochemicals, fertilizers, gas processing, and liquid recovery. It also includes energy efficiency, emissions reduction, carbon capture, and the production of lower-carbon intensity fuels.

The memorandum will be valid for two years, with the possibility of renewal. It does not represent a binding investment commitment nor does it create a partnership, consortium, or joint venture. Projects identified will need to proceed through specific agreements, feasibility analyses, and requisite approvals.