13 April 2012 23:58 [Source: ICIS news]
HOUSTON (ICIS)--Brazil-based Petrobras and Vale signed on Friday a memorandum of understanding (MoU) that addresses fertilizers, at a time when the country is running large trade deficits for the material.
Under the memorandum, Petrobras and Vale will study the economic and technical feasibility of projects that addresses the interests of both companies, Petrobras said.
Ultimately, the companies will develop a work plan that will include timelines and other details, Petrobras said.
Earlier this year, the two companies reached a deal for a 30-year potash lease. The lease will also allow development to continue at the Carnalita potash project in the Brazilian state of Sergipe.
The memorandum comes as Brazil continues to import large amounts of fertilizers. Imports of fertilizer intermediates made up the largest category of chemical imports during the first quarter, according to Abiquim.
In February, the most recent month available, Brazilian fertilizer production reached 662,151 tonnes, while imports reached 731,865m tonnes.
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