SAO PAULO, Dec 23 (Reuters) - Brazil’s state-controlled oil producer Petroleo Brasileiro SA agreed on Wednesday to sign a naphtha supply contract with Braskem SA, Latin America’s largest petrochemical producer, for five years.
Under terms of the deal, which was announced in a securities filing, Braskem will pay the equivalent of 102.1 percent of the benchmark ARA price for naphtha, a petrochemical feedstock. The agreement became effective on Wednesday, the filing said.
The contract will have a mechanism by which terms can be renegotiated as early as 2018, Petrobras said in a separate statement. (Reporting by Guillermo Parra-Bernal; Editing by Chris Reese)