British oil major BP and Petroleo Brasileiro S.A., also known as Petrobras, have formed a strategic alliance to appraise potential business ventures in Brazil and beyond.

The companies have inked a memorandum of understanding (MoU) that allows them to explore upstream, downstream, trading and across low carbon areas. The agreement is likely to incorporate transfer of technology, as well as joint training and research.

The cooperation is in sync with BP’s strategy to capitalize on its expertise in alliance with other world-class energy company. This will help expand the company’s portfolio and enable it to work on newer regions in all the business segments it operates in — upstream, downstream, trading and low carbon — in and outside Brazil. It will help BP enhance value for shareholders.

“Our partnership is based on common values and business principles that guide both companies. We started by joining forces in the last bidding rounds and now we are working to expand the partnership further, beyond upstream,” said Pedro Parente, president of Petrobras.

“Petrobras is a world-class energy company with which BP has built strong relationships over many years. We are now excited to deepen our partnership and explore even more opportunities together across all our businesses – in the upstream, downstream, trading and low carbon – both in Brazil and beyond. We believe that working together in this alliance can deliver real value for both BP and Petrobras,” added BP CEO Bob Dudley.

BP’s presence in Brazil dates back to more than six decades. The company has been supplying fuels and lubricants, discovering oil and gas as well as developing biofuels in Brazil. Currently, BP and Petrobras are partners in 16 exploration blocks in the country. Recently, the companies obtained exploration and production rights for two more blocks offshore Brazil in the Santos pre-salt basin.

Currently, BP employs about 7,000 people at its various business sites in Brazil. It has operations in 15 states — Amapa, Bahia, Ceara, Espirito Santo, Goias, Maranhao, Mato Grosso, Minas Gerais, Parana, Pernambuco, Piaui, Rio de Janeiro, Rio Grande do Norte, Santa Catarina and Sao Paulo and in the Federal District.