Petrobras and Braskem have signed contracts to supply naphtha for two months, starting on September 01: one is for the Braskem Unit in São Paulo and the other is for the Bahia and Rio Grande do Sul units.

Petrobras tried to negotiate a price for the naphtha that both reflected balanced commercial conditions and the market value for this raw material, based on the international market for oil products. Despite all efforts, the parties have still not agreed on a new long-term contract. The parties have agreed to extend the contract for another two months, during which time they will continue to negotiate a new long-term contract.

The price set in the contracts that have ended will be used as a provisional billing amount for the two-month period and will be adjusted for later if a new price is set in a long-term contract, as agreed between the parties or, if it is not agreed upon, the amount set in the contracts is based on international naphtha prices.

Taking the current billing price and the quantity contracted for the period in both contracts, the amount negotiated is estimated at R$ 1.5 billion (without taxes). The following situations are provided for to terminate the contract: breach of any of the clauses in the period over 30 days, bankruptcy or liquidation, the assignment or transfer of contract rights or credit arising from the contract to third parties used as collateral without the consent of the other party, unforeseeable circumstances or force majeure, company dissolution, change in shareholding, change in company type or purpose conflicting with the object of the contract, the failure of Braskem to provide assurances in case of extrajudicial recovery.