President Luiz Inácio Lula da Silva during a visit to Petrobras’ Nitrogen Fertilizer Plant in Bahia (Fafen-BA) on the occasion of the resumption of operations. Photo: Presidency

By Brasil 247 - Brazil's state-controlled oil company Petrobras announced on Wednesday the resumption of fertilizer production at the Bahia Fertilizer Plant (Fafen BA) in Camaçari, according to information released by Brasil 247. The unit has restarted urea production and was visited on Thursday by President Luiz Inácio Lula da Silva, Petrobras President Magda Chambriard and other authorities.

The details were presented during a press conference in Salvador attended by Chambriard and Petrobras Executive Manager for Natural Gas Processing Wagner Felicio. Petrobras said the reopening of Fafen BA is part of the company's 2026-2030 strategic plan and its broader strategy to expand domestic production of nitrogen fertilizers.

Chambriard said the reopening fulfills a commitment previously made alongside Lula in Bahia. "In October last year I was in Bahia with President Lula, and there in Bahia, before the people of Bahia and before the president himself, we made the commitment to resume fertilizer production in Camaçari. Tomorrow we will return to Bahia to say: a promise is a debt, we fulfilled it, and the Bahia fertilizer plant is already operating," she said.

According to Petrobras, the plant had been idle since 2019. It was later leased to a private operator, but operations were halted again in 2023. Chambriard said many doubted the plant would return to operation.

She stated that the resumption became viable due to lower natural gas costs, a key input for fertilizer production. According to Chambriard, the reduction was achieved through scale and investment rather than isolated administrative measures. "What lowers the price of natural gas and fertilizers is large-scale production with solid investments and determination to invest," she said.

The Petrobras president also linked the fertilizer business to the expansion of markets for natural gas associated with the company's oil production. "We began to see the fertilizer sector as a destination, a natural market for the natural gas associated with Petrobras oil production," she said.

Petrobras said around R$100 million was invested in the reopening of Fafen BA, generating approximately 3,600 direct and indirect jobs. Current production is estimated at 1,300 tons of urea per day, equivalent to about 5 percent of Brazil's demand for nitrogen fertilizers.

Chambriard highlighted the importance of urea for Brazilian agriculture, citing its use in crops such as corn, sugarcane, coffee, wheat and cotton, as well as in livestock feed supplements for ruminants.

The reopening of Fafen BA is part of a broader Petrobras strategy in the fertilizer sector. Chambriard also mentioned the reopening of Fafen Sergipe, the reactivation of Fafen Ansa and the resumption of construction at the Nitrogen Fertilizer Unit 3 (UFN3) in Mato Grosso do Sul. Petrobras expects that, with all four units operating by 2028, the company will supply around 35 percent of Brazil's domestic demand for nitrogen fertilizers.

"Before our factories resumed operations in the Northeast, Brazil imported 100 percent of the urea it consumed, and this is now changing," Chambriard said.

The executive also emphasized Petrobras' historical presence in Bahia, recalling the importance of the state in the history of Brazil's oil industry since the discovery of oil in Lobato. She said Petrobras continues to maintain major investments in the state.

According to Chambriard, Petrobras' business plan foresees US$3.5 billion in exploration and production investments in Bahia over the next five years. The plan includes more than 100 wells and interventions in the Recôncavo Baiano region, aimed at more than doubling oil and gas production in the state.

Petrobras also expects these exploration and production activities to generate approximately 6,500 direct and indirect jobs. The company additionally plans to invest R$115 million in the biodiesel plant in Candeias and launch a public call of around R$5 million aimed at cooperatives collecting used cooking oil for biodiesel production.

"I am saying all this to tell you the following: Petrobras never left Bahia. Bahia is important for Petrobras and we are absolutely happy to return to the state delivering more fertilizers, resuming more aggressive exploration and production activities in Bahia, to deliver what we promised: more oil, more gas, more fertilizers and more biofuels," Chambriard said.

(Reported by Brasil 247 on May 13, 2026)