Petrobras and Yara have signed two agreements in a next step towards structuring a potential partnership within fertilizers and industrial products, both based on resumed production in Araucaria Nitrogenados S.A. (ANSA), a wholly-owned subsidiary of Petrobras.

In the first agreement, ANSA will produce Automotive Liquid Reducing Agent (ARLA 32), using Yara’s high-quality automotive grade urea as raw material. This will facilitate the resumption of domestic production, reducing dependency on imports. The ARLA 32 will be sold by Yara.

The contract will be operational until ANSA's production restarts, at which time ARLA 32 will be produced with raw material from ANSA itself.

The second is a technical cooperation agreement for the development of joint studies of fertilizers and industrial products, as well as energy transition efforts linked to decarbonization projects, emission reduction, and production of renewable and low-carbon fertilizers.  This scientific, technological, and operational cooperation aims to achieve greater production efficiency and increase the supply of these products in the market.

Petrobras will invest R$ 870 million for the return of ANSA's operational activities. The factory, located in Paraná, has been hibernated since 2020 and had the return to its operational activities approved in June 2024. The factory is expected to return to operation in May 2025, in an effort to anticipate the initial forecast. These de-hibernation and resumption activities are being carried out directly by Petrobras and ANSA.