Norwegian petroleum company Statoil and Brazilian oil company Petrobras have signed a long-term strategic collaboration agreement for exploration and production, as well as biofuels.

The new agreement builds on a number of existing partnership agreements, and will entail both companies studying several oil and gas business development opportunities in Brazil, as well as on the international front.

Helge Lund, chief executive of Statoil, said: Statoil and Petrobras have high international growth ambitions. The agreement opens for new strategic opportunities to achieve our goals.

The companies plan to enhance project opportunities for bioethanol and contribute to technology development and certification requirements, in order to make biofuel an even more sustainable supplement to fossil fuels in the transport sector.