Nov 7 (Reuters) – Brazil’s state-run oil company Petroleo Brasileiro SA said on Friday two amendments to its contract to supply naphtha to Braskem SA, Latin America’s largest petrochemical company are worth 950 million reais ($252 million).
The contract amendments extend the terms of an agreement for Petrobras, as the oil company is known, to supply Braskem with naphtha, a petrochemical feedstock, to Braskem operations in the Brazilian states of São Paulo, Bahia and Rio Grande do Sul for 45 days starting Nov 1.
Petrobras owns 36 percent of Braskem’s total shares and 47 percent of its voting stock.
“Petrobras maintains discussions with Braskem, seeking in these talks a naphtha price that reflects balanced commercial and exchange conditions for both companies, referencing international market prices for petroleum derivatives,” Petrobras said in a statement.
Petrobras and Braskem have been negotiating a multi-billion-dollar naphtha-supply contract for months. A lack of a final agreement has led to a series of temporary extension agreements.
Braskem, with 36 plants, 29 in Brazil and the rest abroad, including factories in the United States and Germany, is controlled by Brazil’s Odebrecht Group. Odebrecht is one of about two dozen construction and industrial companies involved in a giant price-fixing, bribery and political kickback scandal that has cost Petrobras and its government and non-government investors billions of dollars.
Read More
Brazil Energy Insight 
Leave a comment