Braskem, Petrobras ink five-year naphtha supply contract

24-Dec-15

Brazil's state-controlled oil producer Petroleo Brasileiro SA has agreed to sign a naphtha supply contract with Braskem SA, Latin America's largest petrochemical producer, for five years, as per Reuters. Under terms of the deal, which was announced in a securities filing, Braskem will pay the equivalent of 102.1% of the benchmark ARA price for naphtha, a petrochemical feedstock. The agreement became effective on Wednesday. The contract will have a mechanism by which terms can be renegotiated as early as 2018, Petrobras said in a separate statement.