Rescission of Nitrogenous Fertilizers Unit III construction and assembly contract
Petrobras announces it has rescinded the construction and assembly contract for the Nitrogenous Fertilizers Unit III – UFN III, in Três Lagoas (MS), due to a breach of contract by Consortium UFN3 (consisting of the companies Sinopec and Galvão Engenharia). Rescission negotiations are already under way.
Petrobras stresses it has made all payments and upheld all commitments provided for in the contract. In addition, Petrobras is aware of the consequences of the breach of Consortium UFN3 on workers and suppliers and is taking all the steps within its power to make sure Consortium UFN3 complies with all its legal obligations.
UFN III construction work is 82% complete. Petrobras is revising the timetable to ensure the undertaking is finished in the shortest amount of time possible.
UFN III will produce 1.2 million tons of urea and 70,000 tons of ammonia a year. The Fertilizers Unit will preferentially supply the markets of the Brazilian states of Mato Grosso, Mato Grosso do Sul, Goiás, São Paulo and Paraná.