Petrobras has reached a settlement with Proquigel, a Unigel subsidiary, clearing the path to regain control of fertilizer plants in Bahia and Sergipe.
Petrobras NYSE PBR announced on Thursday that it has signed an agreement with Proquigel , a subsidiary of Brazilian chemical company Unigel , to settle ongoing legal and contractual disputes. The deal—pending ratification by the Arbitral Tribunal—will restore Petrobras ' operational control over the Fertilizer Plants of Bahia FAFEN -BA and Sergipe FAFEN -SE.
This resolution marks a strategic move by Petrobras to reenter the domestic fertilizer market, a sector the company had distanced itself from in recent years amid cost-cutting and divestment efforts. Strategic Context This agreement follows a disclosure made on May 9, 2025, and is in line with Petrobras' 2025–2029 Strategic Plan, which outlines a renewed focus on value creation through vertical integration. By reclaiming these assets, Petrobras intends to revitalize its presence in nitrogen-based fertilizer production, a segment closely tied to Brazil’s vast agricultural sector and aligned with the broader energy transition strategy. Petrobras plans to resume operations at the plants through a public tender for Operation and Maintenance O&M services, ensuring adherence to corporate governance standards and internal protocols. Background Petrobras had previously leased out the FAFEN units to Proquigel as part of a broader privatization and asset divestment initiative. However, operational and legal disputes emerged, leading to stalled production and arbitration proceedings. This new agreement not only ends those disputes but also positions Petrobras to leverage its natural gas supply for ammonia and urea production, reducing dependence on imports and strengthening domestic value chains. The reinstatement of these plants comes as global fertilizer markets remain volatile and Brazil, one of the world's top agricultural producers, continues to seek greater self-sufficiency in fertilizer inputs.
Unigel Proquigel FAFEN Fertilizer Bahia Sergipe Nitrogen Arbitration Energy Transition
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