Brazilian President Luiz Inácio Lula da Silva has announced that he has proposed a partnership between Brazil's state-owned oil company, Petrobras, and Mexico's state-owned oil firm, Pemex, to explore oil resources in the Gulf of Mexico.

Lula stated during an event, "Pemex could benefit greatly from Petrobras's expertise." He mentioned that he had contacted Mexican President Claudia Sheinbaum to present the idea, emphasizing Petrobras's long-standing technical expertise in deepwater oil production.

Petrobras, Pemex, and Sheinbaum's office have not yet responded to requests for comment.

Petrobras currently operates in the Gulf of Mexico through a joint venture with Murphy Exploration & Production. Pemex has been attempting to advance complex projects in the Gulf, including the Lakach deepwater natural gas development, but production from its aging offshore fields continues to decline.

Lula also noted that Petrobras will seek to repurchase a refinery in Bahia. The refinery was sold in 2021 to Mubadala, Abu Dhabi's sovereign wealth fund, during the administration of his predecessor, Jair Bolsonaro.

Referring to the Mataripe refinery, now controlled by Mubadala's subsidiary Acelen, Lula said, "They sold the Bahia refinery; we will buy it back. It may take some time, but we will certainly do it."

Acelen redirected the request for comment to Mubadala, which declined to respond.

The facility, formerly known as the Landulpho Alves refinery, is one of Brazil's largest refineries and was one of the most symbolic assets sold in Petrobras's previous divestment program.