Brazil's government-owned oil and gas company Petrobras announced Tuesday that it had signed two agreements with Mexico's national oil company Pemex to work together in technology development.

The Brazilian company will contribute to the cooperation with its expertise in processing heavy oil produced in shallow waters, while the Mexican company will share its technology in producing oil in fractured carbonated reservoirs, according to a statement released by Petrobras.

During the agreement talks, Petrobras' President Jose Sergio Gabrielli, a member of Brazilian President Luiz Inacio Lula da Silva's entourage during his visit to Mexico, made a presentation to investors at the seventh Mexico-Brazil Plenary Meeting.

Gabrielli highlighted Brazil's experience in bio-fuel production such as ethanol and its exportation. He also emphasized Latin America's capacity to participate in this market, using data provided by the United Nations' Food and Agriculture Organization (FAO), which shows the region uses only 13.9 percent of its farming land for crops such as sugarcane, while Asia uses 61.4 percent, for instance.

Petrobras also said the company leads, with a 45-percent stake, a consortium comprising Japanese Teikoku Oil (40 percent) and Mexican Diavaz (15 percent), operating in the Burgos Basin, northern Mexico.

The so-called PTD consortium holds two 15-year agreements with Pemex to provide services in the Cuervito and Fronterizo gas fields, estimated to be worth "nearly 260 million U.S. dollars each," said Petrobras.