Petróleo Brasileiro SA (Petrobras) has signed an agreement to resolve existing contractual disputes and litigation with Proquigel, a Unigel unit.
The agreement still has to be ratified by an arbitral tribunal to take effect. Both parties have requested ratification of the deal, Petrobras said in a media release.
The agreement allows Petrobras to regain possession of the fertilizer plants in Bahia and Sergipe, allowing the company to resume operations through a bidding process for contracting operations and maintenance services.
According to its 2025-2029 Business Plan, Petrobras said it plans to restart operations in the fertilizer sector to generate value from the production and sale of nitrogen-based products, while also integrating with the oil and natural gas production chain and supporting the energy transition.
Earlier this month, Petrobras reported a net profit of BRL 35 billion ($6 billion) for the first quarter. The company achieved adjusted earnings before interest, taxes, depreciation, and amortization of BRL 61 billion ($10.5 billion) and an operating cash flow of BRL 49.3 billion ($8.5 billion).
Quarterly total investments amounted to BRL 23.7 billion ($4.1 billion), primarily directed to pre-salt projects in the Búzios and Atapu fields.
Petrobras’ oil and natural gas output was 2.77 million barrels of oil equivalent per day, up 5.4 percent compared to the preceding quarter.
Source: By Paul Anderson from Rigzone.com