Petrobras finds issues in Braskem naphtha contract

OREANDA-NEWS. July 23, 2015.  Brazilian state-controlled oil company Petrobras said it has identified "irregularities" in the 2009 naphtha supply contract with local petrochemicals company Braskem, a sign that a widespread bribery scandal may have tainted the deal.

Petrobras said that it is "adopting the necessary administrative measures" and has also shared the results of their internal investigations with authorities.

Braskem said in a statement to the local securities regulator that it is conducting its own independent investigation and does not believe that the Petrobras investigation can be considered conclusive because Braskem employees did not participate.

The two companies are currently negotiating a long-term naphtha supply contract, which needs to be signed by 31 August.

In February, the two companies reached a last-minute agreement to extend its naphtha supply contract for six months. This was the third contract extension.

Braskem depends on Petrobras for 70pc of its naphtha requirements and imports the rest from other suppliers. Because of logistical constraints, Braskem cannot increase its naphtha imports.

Brazilian conglomerate Odebrecht controls Braskem with a 38pc stake. Petrobras holds 36pc and the remaining shares are publicly listed.

Odebrecht is among nearly two dozen firms currently under investigation for its alleged participation in a corruption and bribery scheme involving Petrobras.

Odebrecht CEO Marcelo Odebrecht was arrested on 19 June and was indicted on 20 July for several crimes including corruption, money laundering and fraud.