Brazilian state-owned oil company Petrobras and its Bolivian counterpart YPFB, will sign a memorandum of understanding for future cooperation by the end of February, the Brazilian company said in a statement on Friday.

The announcement, made days after Bolivian President Evo Morales pledged to assert more government control over the country's oil and gas exploitation, has been seen as a positive sign in Brazil.

According to the statement, government ministers from both countries, as well as heads of the two petrol companies, will sign the deal which will outline further cooperation between the two countries in natural gas exploration.

Under the planned memorandum, Brazil will be required to provide technology and expertise to Bolivia in using natural gas as a major fuel.

Bolivia provides for nearly half of Brazil's natural gas needs, exporting some 27 million cubic meters a day to its Andean neighbor through a Bolivia-Brazil gas pipeline.

Petrobras, with its two refineries controlling 95 percent of Bolivia's refining capacity, is the largest private investor in Bolivia.

Source: Xinhua