By Brazil Stock Guide – Petrobras (PETR4) said it has signed new long-term commercial contracts with Braskem S.A. (BRKM5), renewing and expanding a core supply relationship as existing agreements near expiration. The deals cover naphtha, ethane, propane, hydrogen and propylene, with terms starting in January 2026 and extending for as long as 11 years, for an estimated $17.8 billion.
The agreements are being signed amid Novonor’s ongoing process to sell control of Braskem to IG4 Capital, which represents creditor banks, adding commercial visibility during a shareholder transition that is still moving through regulatory and corporate steps.
The largest package involves petrochemical naphtha supplied to Braskem’s plants in São Paulo, Bahia and Rio Grande do Sul, priced against international naphtha benchmarks. The contracts set minimum monthly offtake with flexibility for additional volumes, allowing deliveries to reach 4.116 million metric tons in 2026 and 4.316 million tons by 2030. The estimated value is $11.3 billion, with a five-year term beginning Jan. 1, 2026.
Another contract covers ethane, propane and hydrogen supplies to Rio de Janeiro, with prices linked to international natural gas and propane references. From 2026 to 2028, volumes remain at 580,000 tons per year in ethylene equivalent, produced and supplied from Reduc. From 2029 through 2036, volumes rise to 725,000 tons per year to support Braskem’s planned expansion, with production from Reduc and/or the Boaventura Complex. The estimated value is $5.6 billion, with an 11-year term starting in 2026.
Petrobras also signed propylene supply contracts sourced from the Reduc, Recap and Refap refineries, priced off international propylene benchmarks. Volumes reach up to 140,000 tons per year at Recap, 100,000 tons at Reduc, and are ramped at Refap to 60,000 tons annually. The estimated value is $940 million, with a five-year term starting in May 2026.
Petrobras said the transactions are classified as Related-Party Transactions, structured on strictly arm’s-length terms and aligned with market conditions, and were reviewed by the company’s Statutory Audit Committee. The contracts bolster revenue visibility for Petrobras’ refining and petrochemical operations while securing critical feedstocks for Braskem’s operations and expansion over the next decade.
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