Brazil's Unigel approves deal with Petrobras on fertilizer plants, sources say
RIO DE JANEIRO, May 9 (Reuters) - The board of directors of Brazilian chemical firm Unigel on Friday approved a deal proposed by oil giant Petrobras (PETR4.SA), opens new tab to settle legal disputes over fertilizer plants in northeastern Brazil, two sources familiar with the matter said.
The deal would allow state-run Petrobras to work on resuming operations of the two plants in the states of Sergipe and Bahia, as President Luiz Inacio Lula da Silva's administration seeks to reduce Brazil's reliance on imported fertilizer.
Petrobras leased the two nitrogen fertilizer plants to Unigel in 2019 under a 10-year agreement, but both facilities have been shut down since 2023, with Unigel citing unfeasible operating conditions due to high natural gas prices in Brazil.
The deal would reestablish Petrobras' possession over the two plants, according to a securities filing released by the oil firm in April, with operations set to resume after a bidding process to contract services to run and maintain them.
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