Petrobras agrees to supply naphtha to Braskem for additional two months

11-Sep-15

Brazil's state-run oil company Petroleo Brasileiro SA (Petrobras) and Latin America's largest petrochemical producer Braskem are negotiating a long-term contract. In the interim, Petrobras has agreed to supply naphtha Braskem for two more months, as per Reuters. The contract has been under intense scrutiny after prosecutors charged executives at engineering group Odebrecht SA (Braskem biggest shareholder), with paying bribes to Petrobras executives to secure naphtha at a price that allegedly cost the oil company billions of dollars. Braskem and and Odebrecht have denied any wrongdoing, but Petrobras, Braskem' second-largest shareholder, confirmed irregularities in the process of approving the 2009 contract.