(Commission File No. 1-14862 )

 

São Paulo, December 14, 2015.

To the

Brazilian Securities and Exchange Commission (CVM)

Rua Cincinato Braga, 340

CEP: 01333-010

São Paulo – SP

Headquarters: Rua 7 de setembro, 111

CEP: 20050-901

Rio de Janeiro/RJ

Attention to:      Nilza Maria Silva de Oliveira

Company Monitoring Manager-1

Reference: Letter no. 536/2015/CVM/SEP/GEA-1

Dear Sirs,

We hereby refer to Letter no. 536/2015/CVM/SEP/GEA-1 (“Letter”) of December 11, 2015, through which you requested Braskem S.A. (“Braskem” or “Company”) to clarify the notice reported on that date on the Valor Econômico newspaper, as follows:

“Dear Sir,

We are hereby referring to the news reported on this date on the Valor Econômico newspaper, section Companies, entitled “State Company and Braskem agree on naphta price”, which include the following information:

Petrobras and Braskem agreed on naphta price, which will consist of a new long-term supply contract, according to Valor Econômico. The state company and the petrochemical company agreed to establish a fixed price close to 100% of the ARA (Amsterdam, Rotterdam and Antwerp) price, practiced in the European market and amongst the most expensive in the world. However, the final contract has not been signed yet. According to a source, "Although being expensive, it was the possible agreement.”

The signature of the ten-year term contract would now depend on defining specific supplementary conditions, such as the place to deliver the input and the payment terms, and the state company’s bureaucracy could slow the process down. Additionally, a final position regarding a renegotiation clause to the terms of the contract was still pending should market conditions become unfavorable to one of the parties.

It was expected that the contract would be announced today, during the Annual Meeting of the Chemical Industry (Enaiq), in São Paulo, as agreed in a meeting held last week with the Board members of the Brazilian Chemical Industry Association (Abiquim) and Petrobras’ Supply Officer, Jorge Celestino Ramos. "The information I received is that price was no longer the problem”, said Abiquim’s Executive President, Fernando Figueiredo. "But I am getting worried because the 15^th is close and we still do not have an official confirmation."

The term for the last contract amendment signed in 2009 and terminated by Petrobras in February 2014 ends on Tuesday. The current amendment is effective for 45 days and there is a fear that Petrobras can propose a new extension. Valor Econômico verified that naphta price was virtually agreed prior to signing the current contract amendment, after intervention of the Federal Government, including President Dilma Rousseff.

The new price virtually maintains the amounts currently paid by the petrochemical company to Petrobras, or 100% of ARA’s price. According to the contract ended in 2014, Braskem paid between 92.5% and 105% of the European price based on market conditions. Currently, with oil traded below US$40 the barrel, the percentage would be close to the ceiling.

The contract puts an end to a deadlock lasting for over two years. Braskem and Petrobras, the second largest shareholder of the company controlled by Odebrecht, have been discussing, since 2013, a new purchase and sale agreement for the main input of the petrochemical company. During negotiations, the contract signed in 2009 was investigated by the Lava-Jato Operation, after Petrobras’ former Supply Officer, Paulo Roberto Costa, confirmed, in a testimony to the court, having received US$5 million per year to benefit the petrochemical company in the purchase of naphta.

In view of the above, we require you to clarify whether the news are true and, should the veracity be confirmed, we require you to explain the reasons why you understood this was not a material fact and comment on other information deemed relevant on this matter.

In response to the request, Braskem clarifies that:

(a) the news refers to negotiations for the renewal of the naphtha supply contract between Braskem and Petrobras;

(b) it was the subject of a Notice to Market, dated October 30, 2015, in which Braskem reported the signing of new amendments to the naphtha contract effective until December 15, 2015, as well as a letter from  this authority replied on November 6, 2015;

(c) Braskem has been keeping the market informed on the progress of the negotiations in its quarterly results presentations, filed with the CVM, and also available on its Investor Relations website; and

(d) as soon as the negotiations for a new long-term naphtha supply contract are concluded, and the contract is signed, the market will be dully informed.

We remain available to provide any further clarifications.

Regards,

SIGNATURES

        Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.