Brazil's state-run oil giant Petrobras announced that it signed a memorandum of understanding with the China's company to exploit energy resources in Brazil and abroad.

In the statement, Petrobras said that the deal will allow the two state oil companies to benefit from each other's capacity and experience in oil and gas production.

Brazil and China bolstered ties this year with a joint launch of a 20-billion-U.S.-dollar fund on May 30 to finance development projects in the South American country, especially in infrastructure building.