MOSCOW (MRC) -- 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, as per Plastemart.
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 70% of its naphtha requirements and imports the rest from other suppliers. Because of logistical constraints, Braskem cannot increase its naphtha imports.
As MRC informed previously, Braskem plans to build a new polyethylene (PE) plant at its existing complex in La Porte, Texas. The new plant will manufacture ultra-high molecular weight polyethylene (UHMWPE), making it the first time for Braskem to produce UHMWPE outside of its home base in Brazil. Construction on the plant will begin in the third quarter of 2014, with completion expected in the first half of 2016.
Braskem is Brazilian main producer of polyethylene and polypropylene. In addition with ongoing plants located in both petrochemical complexes, in April 2008 Braskem opened a 300,000 metric ton polypropylene plant in the city of Paulinia (Sao Paulo).
MRC