The UK-based energy giant BP has signed a memorandum of understanding to explore areas of cooperation with Petróleo Brasileiro (Petrobras).

Petrobras and BP agreed to explore potential joint commercial agreements in areas of mutual interest in upstream, downstream, trading and across low carbon initiatives, inside and outside Brazil.

The alliance is also expected to include the transfer of technology, as well as joint training and research.

Pedro Parente, president of Petrobras, said the two companies started by joining forces in the last bidding rounds and are working to expand the partnership further, beyond upstream.

BP and Petrobras currently partner in 16 exploration blocks in Brazil.