(Reuters) – Brazil’s government believes state-run oil firm Petrobras (PETR4.SA) could increase its stake in petrochemical producer Braskem (BRKM5.SA) to facilitate an eventual sale to foreign buyers, a person familiar with the discussions said on Tuesday.
Probes of Braskem have mounted as the ground has been sinking in the city of Maceio, in Alagoas state, where the company operates rock salt mines. Several neighborhoods have been evacuated since 2018.
Brazil President Luiz Inacio Lula da Silva made the government’s intentions known at a meeting that included Alagoas’ two main political leaders in Congress – Speaker of the House Arthur Lira and Senator Renan Calheiros – as well as ministers, other lawmakers and local authorities, according to the source.
“What Lula said very clearly was the following: If Petrobras needs to contribute any more resources to strengthen its position of purchase by external, international funds, that’s the move,” said the source.
Brazil’s presidential palace did not immediately respond to a request for comment.
In November, Abu Dhabi oil company ADNOC (ADNOC.UL) presented an offer to buy conglomerate Novonor’s stake in Braskem.
Petrobras holds 36.1% of Braskem’s total capital and 47% of its voting capital. Novonor, formerly known as Odebrecht, controls 38.3% of total capital and 50.1% of voting capital.
The state-owned company has preference rights to buy Novonor’s stake, as well as rights to tag along in the ADNOC deal and also sell its stake.
Questioned on the matter, Petrobras stressed that it is carrying out due diligence on Braskem “for the possible exercise of tag along or preemptive rights, in the event of the sale of the shares held by Novonor.”
So far, Petrobras’ management and board of directors have not come to a decision, it said.
Novonor declined to comment on the matter.
Brazil Energy Insight 
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