Multinational energy corporation Shell and Brazil’s state-owned oil and gas company Petrobras have inked an agreement to look into energy transition opportunities.
The two fossil fuel supermajors signed a Memorandum of Understanding (MoU), according to which they will jointly explore oil and gas exploration potential over the next five years.
The MoU details that Shell and Petrobras plan to work together on a whole list of strategies designed to reduce emissions, including carbon capture, utilization and storage (CCUS) technologies, renewables, and even the purchase of carbon credits.
To do this, both sides will launch a number of different studies and research projects, all of which will be closely monitored by committees formed by the companies to keep track of progress.
This year, Shell will celebrate its 110th anniversary working in Brazil, and the agreement with the state-owned oil company largely reinforces its presence in the country.
Petrobras CEO Jean Paul Prates commented on the partnership by saying: “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.”
So far, according to the company itself, Petrobras has managed to reduce its greenhouse gas (GHG) emissions by over 20% in the last decade.
And as the Brazilian oil giant has set targets requiring further cuts by 2025 and 2030, it is now hard at work developing solutions to put a stop to flaring and also creating new technologies, such the electrification of floating production.
Furthermore, Petrobras operates what is currently one of the largest CCUS programs, and just recently the company announced it has injected a record-breaking 10 million metric tons of CO2 into oil reservoirs for a practice known as enhanced oil recovery.