Latest news with #Unigel
Reuters
09-05-2025
- Business
- Reuters
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 ( 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.
Reuters
23-04-2025
- Business
- Reuters
Petrobras board authorizes agreement with Unigel on fertilizer plants
SAO PAULO, April 23 (Reuters) - Brazilian state-run oil firm Petrobras ( opens new tab said on Wednesday its board of directors authorized the firm to seal a deal with chemical company Unigel to settle legal disputes over two fertilizer plants in northeastern Brazil. The agreement would reestablish Petrobras' possession over the two fertilizer plants located in Sergipe and Bahia states, Petrobras said in a securities filing. The Reuters Tariff Watch newsletter is your daily guide to the latest global trade and tariff news. Sign up here. The plants' operations would resume after a bidding process to contract services to operate and maintain them, Petrobras said, adding the deal still requires internal approval within Unigel and must meet other conditions in order to take effect. Unigel did not immediately respond to a request for comment outside normal business hours. Petrobras leased the two nitrogen fertilizer plants to Unigel in 2019 under a 10-year agreement. However, both facilities have been shut down since 2023, with Unigel citing unfeasible operating conditions due to high natural gas prices in Brazil. The two companies are currently engaged in arbitration proceedings related to the lease contract, including disagreements over the shutdown of operations, Unigel's investments, and gas supply terms. The announcement comes after Reuters reported on Friday, citing sources, that Petrobras' board had approved plans to select a partner to restart operations at the fertilizer plants.
Yahoo
18-04-2025
- Business
- Yahoo
Petrobras approves tender to restart fertilizer plants in Brazil's northeast, say sources
By Rodrigo Viga Gaier and Marta Nogueira RIO DE JANEIRO (Reuters) - The board of Brazilian state-run oil company Petrobras on Thursday approved plans to select a partner to restart operations at its fertilizer plants in northeastern Brazil, according to four sources familiar with the matter. But the move still hinges on resolving ongoing disputes with current leaseholder Unigel, added the sources, who requested anonymity as the decision has not yet been made public. Chemical company Unigel was demanding compensation from Petrobras for losses on the plants, as previously reported by Reuters, with the impasse marking a setback for President Luiz Inacio Lula da Silva's plans to reduce Brazil's dependency on imported fertilizer. As an agricultural powerhouse, Brazil is among the world's top consumers of fertilizers, more than 80% of which it imports. Petrobras leased the two nitrogen fertilizer plants, located in the states of Bahia and Sergipe, to Unigel in 2019 under a 10-year agreement. However, both facilities have been shut down since 2023, with Unigel citing unfeasible operating conditions due to high natural gas prices in Brazil. Unigel has yet to respond to Petrobras following the board decision, the sources said. Petrobras declined to comment when contacted by Reuters. Unigel did not immediately respond to a request for comment. The two companies are currently engaged in arbitration proceedings related to the lease contract, including disagreements over the shutdown of operations, Unigel's investments, and gas supply terms. A formal tender can move forward only if a negotiated settlement is reached, the sources said. "We approved the tender process, but for it to happen, the arbitration must be resolved. Without that, we can't move ahead," one company source emphasized. A second source said that if the disputes are fully resolved, Unigel itself could take part in the upcoming bidding process to resume operations at the plants. Sign in to access your portfolio
Yahoo
18-04-2025
- Business
- Yahoo
Petrobras approves tender to restart fertilizer plants in Brazil's northeast, say sources
By Rodrigo Viga Gaier and Marta Nogueira RIO DE JANEIRO (Reuters) - The board of Brazilian state-run oil company Petrobras on Thursday approved plans to select a partner to restart operations at its fertilizer plants in northeastern Brazil, according to four sources familiar with the matter. But the move still hinges on resolving ongoing disputes with current leaseholder Unigel, added the sources, who requested anonymity as the decision has not yet been made public. Chemical company Unigel was demanding compensation from Petrobras for losses on the plants, as previously reported by Reuters, with the impasse marking a setback for President Luiz Inacio Lula da Silva's plans to reduce Brazil's dependency on imported fertilizer. As an agricultural powerhouse, Brazil is among the world's top consumers of fertilizers, more than 80% of which it imports. Petrobras leased the two nitrogen fertilizer plants, located in the states of Bahia and Sergipe, to Unigel in 2019 under a 10-year agreement. However, both facilities have been shut down since 2023, with Unigel citing unfeasible operating conditions due to high natural gas prices in Brazil. Unigel has yet to respond to Petrobras following the board decision, the sources said. Petrobras declined to comment when contacted by Reuters. Unigel did not immediately respond to a request for comment. The two companies are currently engaged in arbitration proceedings related to the lease contract, including disagreements over the shutdown of operations, Unigel's investments, and gas supply terms. A formal tender can move forward only if a negotiated settlement is reached, the sources said. "We approved the tender process, but for it to happen, the arbitration must be resolved. Without that, we can't move ahead," one company source emphasized. A second source said that if the disputes are fully resolved, Unigel itself could take part in the upcoming bidding process to resume operations at the plants. Sign in to access your portfolio
Reuters
18-04-2025
- Business
- Reuters
Petrobras approves tender to restart fertilizer plants in Brazil's northeast, say sources
RIO DE JANEIRO, April 18 (Reuters) - The board of Brazilian state-run oil company Petrobras ( opens new tab on Thursday approved plans to select a partner to restart operations at its fertilizer plants in northeastern Brazil, according to four sources familiar with the matter. But the move still hinges on resolving ongoing disputes with current leaseholder Unigel ( opens new tab, added the sources, who requested anonymity as the decision has not yet been made public. Chemical company Unigel was demanding compensation from Petrobras for losses on the plants, as previously reported by Reuters, with the impasse marking a setback for President Luiz Inacio Lula da Silva's plans to reduce Brazil's dependency on imported fertilizer. As an agricultural powerhouse, Brazil is among the world's top consumers of fertilizers, more than 80% of which it imports. Petrobras leased the two nitrogen fertilizer plants, located in the states of Bahia and Sergipe, to Unigel in 2019 under a 10-year agreement. However, both facilities have been shut down since 2023, with Unigel citing unfeasible operating conditions due to high natural gas prices in Brazil. Unigel has yet to respond to Petrobras following the board decision, the sources said. Petrobras declined to comment when contacted by Reuters. Unigel did not immediately respond to a request for comment. The two companies are currently engaged in arbitration proceedings related to the lease contract, including disagreements over the shutdown of operations, Unigel's investments, and gas supply terms. A formal tender can move forward only if a negotiated settlement is reached, the sources said. "We approved the tender process, but for it to happen, the arbitration must be resolved. Without that, we can't move ahead," one company source emphasized. A second source said that if the disputes are fully resolved, Unigel itself could take part in the upcoming bidding process to resume operations at the plants.
