Petrobras board authorizes agreement with Unigel on fertilizer plants
The agreement would reestablish Petrobras' possession over the two fertilizer plants located in Sergipe and Bahia states, Petrobras said in a securities filing.
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The plants' operations would resume after a bidding process to contract services to operate and maintain them, Petrobras said, adding the deal still requires internal approval within Unigel and must meet other conditions in order to take effect.
Unigel did not immediately respond to a request for comment outside normal business hours.
Petrobras leased the two nitrogen fertilizer plants to Unigel in 2019 under a 10-year agreement. However, both facilities have been shut down since 2023, with Unigel citing unfeasible operating conditions due to high natural gas prices in Brazil.
The two companies are currently engaged in arbitration proceedings related to the lease contract, including disagreements over the shutdown of operations, Unigel's investments, and gas supply terms.
The announcement comes after Reuters reported on Friday, citing sources, that Petrobras' board had approved plans to select a partner to restart operations at the fertilizer plants.
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