OREANDA-NEWS. Petrobras have formalized the purchase of Vale's Araucaria nitrogenous fertilizer plant. The agreement will be signed tomorrow, June 1st, at our headquarters, in Rio de Janeiro.

The purchase price was USD 234 million, and the payment will be made with revenue from the lease, to Vale, of the mining rights owned by Petrobras in the State of Sergipe.

Located in the city of Araucaria, State of Parana, the plant neighbors the Presidente Getulio Vargas Refinery - Repar, which provides feedstock to it. With the Fafen/Parana acquisition we have reinforced our fertilizer business area, in alignment with our 2013-2017 Business and Management Plan.

The unit has an annual production capacity of 700,000 tonnes of urea and 475,000 tonnes of ammonia, in addition to producing the Automotive Liquid Reducing Agent (Arla 32).

Fafen/Parana becomes part of our fertilizer production portfolio, which has in activity Fafen/Sergipe, with a production capacity of 657,000 tonnes/year of urea and 456,000 tonnes/year of ammonia, and Fafen/Bahia, capable of producing 474,000 tonnes/year of urea and 474,000 tonnes/year of ammonia.