On 23 June in Rio de Janeiro, Brazil’s Petrobras and Mexico’s Pemex signed a non-binding memorandum of understanding (MoU) to evaluate joint projects across the hydrocarbon chain, from deepwater exploration in the Gulf of Mexico to refining, petrochemicals and carbon capture. The two-year framework, renewable by mutual consent, does not entail any financial commitment or the creation of a joint venture; any future cooperation will require separate feasibility studies and corporate and regulatory approvals.

Speaking at the signing, Petrobras president Magda Chambriard framed the accord as a natural step for a company whose future, she argued, depends on continuous exploration. She noted that the Mexican portion of the Gulf of Mexico remains “practically virgin” in ultra-deep waters and that Petrobras’s experience in Brazil’s pre-salt plays could be applied there. Brazilian government sources indicated that the initiative was catalysed by President Luiz Inácio Lula da Silva, who raised the idea with Mexican President Claudia Sheinbaum, leading to reciprocal technical visits between the two state companies.

From the Mexican side, Pemex director general Juan Carlos Carpio Fragoso said the MoU opens a path to new discoveries and to optimising output in deep waters, heavy-oil areas and mature fields, including a potential pre-salt layer in the Gulf. Pemex, which according to its financial statements carries debts of roughly $80 billion and has seen production decline as legacy fields such as Cantarell deplete, has been seeking partnerships to stabilise output. Carpio added that the company’s cash-flow position had improved, allowing it to channel resources to long-term investments.

The agreement also covers industrial processes—refining, fertilisers, gas processing, low-carbon fuels—and the exchange of regulatory know-how. While not formally part of the MoU, executives acknowledged potential synergies with Braskem, the Brazilian petrochemical firm whose Mexican joint venture has faced feedstock shortages from Pemex. Viewed from Brasília and Mexico City, the accord signals a political will to deepen energy ties between Latin America’s two largest economies, though analysts caution that the non-binding nature leaves the timeline and scale of any concrete projects uncertain. Working groups from both companies are expected to begin meeting in the coming weeks, with no fixed date for translating the framework into binding contracts.