Braskem and Petrobras to extend a 5 year naphtha supply agreement for six months

12-Mar-14

Brazilian petrochemical company Braskem and national oil company Petrobras agreed to extend for six months a five-year naphtha supply agreement that expired end-February, according to Valor Econômico newspaper. Petrobras, which is also Braskem's second largest shareholder, supplies the company with 7Mt of the 10Mt of naphtha it uses each year to produce petrochemicals. Petrobras is reportedly looking to pass on higher costs for importing naphtha to Braskem. According to Valor Econômico, the current price of naphtha in the existing Braskem contract could rise by 5% in a new deal.