China, Brazil oil cooperation to boost energy security

China and Brazil have been strengthening collaboration in deep-sea oil and gas exploration in recent years, with analysts and industry leaders seeing this as a strategic move to enhance energy security and drive technological innovation for both countries.

Brazil has abundant and high-quality deep-sea oil and gas reserves, while Chinese oil and gas firms bring unique advantages in funding and market access. This complementary relationship positions their partnerships as critical to ensuring energy stability, they said.

As technological advances reshape global energy demand, deep-sea resources are increasingly viewed as a growth driver within the ocean economy, according to a research institute of the China National Offshore Oil Corp, the third-largest oil company in China.

In recent years, global exploration and development of marine oil and gas have accelerated, with deep-sea and ultra-deep-sea fields emerging as strategic reserves to support global energy needs, it said.

According to the institute, Brazil, rich in offshore oil reserves and aiming to expand its capacity in both traditional and ultra-deep-sea drilling, is emerging as a prominent new player in the global oil production market while drawing major investments from domestic and international interests.

Brazil has rich reserves of oil, natural gas and minerals, while China has significant advantages in the extraction, processing and technology of energy and mineral resources, leading to the vast potential for cooperation in the oil, gas and mining sectors, the institute said.

CNOOC secured a long-term contract in August for the trade of 12 million barrels of crude oil from Brazil's Mero oilfield, the third-largest pre-salt ultra-deepwater oilfield in the world.

The Chinese oil company has been involved in Brazil's deepwater oilfields for a decade, collaborating with companies such as Shell, BP and Petrobras to participate in oil and gas project bids, securing several key exploration and development projects.

Mariana Rodrigues Franca, deputy director of the technology and environment department at the Brazilian National Agency for Petroleum, Natural Gas and Biofuels, emphasized China's involvement in Brazil's development and in the wider region.

"China plays a crucial role in global political, economic and technological spheres, contributing significantly to world peace and development," she said.

Franca expressed optimism that cooperation in marine technology will continue to advance, driving innovation forward.

Sun Hongbo, a researcher in China-Latin American relations at the Chinese Academy of Social Sciences, said that Latin American countries are eager to deepen energy cooperation with China, viewing China as a stable, long-term and reliable strategic partner.

"Latin America's energy collaboration with China is anchored in priorities such as stabilizing oil exports, reducing energy costs to strengthen industrial competitiveness, ensuring sustainable long-term energy supplies, and fostering macroeconomic stability through energy sector growth," he said.

"This expanding partnership goes beyond energy security, intertwining with broader areas of trade, political relations, finance and mutual development goals, thus heightening the strategic importance of these alliances."

Sun advised Chinese enterprises to align more closely with Latin American domestic market demands and the region's overall energy needs.

"Chinese companies should expand their focus from securing resource rights to advancing local industry development, especially in sectors like power grids, solar and wind energy, where collaboration opportunities are ample," he said.

In the long term, Chinese companies should seize these opportunities by advancing research into the potential of global deep-sea oil resources, strengthening strategic positioning and focusing on deep-sea exploration technologies and engineering equipment. By pooling resources and collaborating on different stages of the production chain, Chinese firms can bolster their competitive edge in deep-sea exploration in Brazil, driving innovation and fostering collaborative strength in international markets, Sun said.