Stock Markets June 23, 2026 01:13 PM

Pemex and Petrobras Sign Non-Binding MoU to Cooperate on Exploration, Refining and Petrochemicals

Agreement aims to broaden reserves and joint activity across Gulf of Mexico waters, refining and gas sectors

By Avery Klein
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Mexico's state oil company Petroleos Mexicanos (Pemex) and Brazil's Petroleo Brasileiro SA (Petrobras) have signed a non-binding memorandum of understanding to work together on oil exploration, production and refining. The companies announced the pact at an event in Rio de Janeiro and said collaboration will extend to shallow and deepwater areas of the Gulf of Mexico, as well as natural gas, petrochemicals and other related activities.

Pemex and Petrobras Sign Non-Binding MoU to Cooperate on Exploration, Refining and Petrochemicals
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Key Points

  • Pemex and Petrobras signed a non-binding memorandum of understanding to cooperate on oil exploration, production and refining.
  • The deal covers shallow and deepwater areas of the Gulf of Mexico, as well as refining, natural gas, petrochemicals and other areas - with both companies aiming to expand reserves.
  • The announcement was made in Rio de Janeiro; Petrobras highlighted plans to explore Mexico's deepwater resources and said exploration will not be limited to the Gulf.

Petroleos Mexicanos (Pemex) and Petroleo Brasileiro SA (Petrobras) have formally agreed to pursue cooperative activity under a non-binding memorandum of understanding covering exploration, production and refining operations, company executives said at an event in Rio de Janeiro.

The scope of the memorandum includes joint work in both shallow and deepwater zones of the Gulf of Mexico. In addition, the agreement encompasses collaboration on refining operations, natural gas, petrochemicals and other related sectors. Both national oil companies identified the expansion of their reserves as a central objective of the partnership.

Petrobras Chief Executive Officer Magda Chambriard said the memorandum will initiate closer cooperation on exploring Mexico's deepwater resources. She also noted that exploration activity under the agreement will not be confined to the Gulf.

The memorandum unites the two largest oil companies in Latin America. The document is non-binding in nature, creating a framework for cooperation rather than a firm set of commitments. Pemex currently faces a set of internal challenges that the companies acknowledged as part of the context for the memorandum - including large debts, declining output and operational inefficiencies. Petrobras has described the move as part of its effort to find drilling locations beyond Brazil in order to secure reserves for coming decades.

The announcement in Rio de Janeiro places both firms on a path of potential joint activity across exploration and downstream areas. The agreement covers multiple technical and commercial areas - from deepwater exploration to refining and petrochemical development - but, as a memorandum of understanding, its next steps will depend on subsequent agreements and project-level decisions.


Sectors mentioned: upstream oil exploration (shallow and deepwater), refining, natural gas, petrochemicals.

Risks

  • The memorandum is non-binding, creating uncertainty about whether and when specific projects will proceed - this affects capital expenditure and project planning in exploration and refining sectors.
  • Pemex faces significant internal challenges noted in the announcement - large debts, declining output and operational inefficiencies - which could hinder the pace and scope of cooperative projects, impacting upstream and downstream operations.
  • Petrobras' objective of securing drilling locations outside Brazil introduces uncertainty about reserve outcomes and the timeline for developing new fields, with implications for exploration budgets and long-term reserve replacement strategies.

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