RIO DE JANEIRO, May 9 (Reuters) - Brazilian chemical firm Unigel approved a deal proposed by oil giant Petrobras (PETR4.SA) , opens new tab to settle legal disputes over two fertilizer plants in northeastern Brazil, Petrobras said on Friday, confirming an earlier report by Reuters.

The deal would allow state-run Petrobras to work on resuming operations of the two plants in the states of Sergipe and Bahia, as President Luiz Inacio Lula da Silva's administration seeks to reduce Brazil's reliance on imported fertilizer.

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Petrobras leased the two nitrogen fertilizer plants to Unigel in 2019 under a 10-year agreement, but both facilities have been shut since 2023, with Unigel citing unfeasible operating conditions due to high natural gas prices in Brazil.

The deal, which still needs to be ratified by the arbitration court, reestablishes Petrobras' possession over the two plants, Petrobras said in a securities filing. Operations are set to resume after a bidding process to contract services to run and maintain them, it added.

https://www.reuters.com/business/energy/brazils-unigel-approves-deal-with-petrobras-fertilizer-plants-sources-say-2025-05-09/