Brazil’s Petrobras Outbids Chevron and Venezuela to Get Exxon in Chile

Esso/Exxon Multinational oil giant Petrobras, Brazil's state-controlled company, has offered US$ 900 million for Exxon's assets in Chile as part of its regional downstream expansion policy that includes Argentina, Chile, Paraguay and Uruguay.

Earlier this month, Venezuelan state-owned company PDVSA and the US company Chevron also expressed their interest in acquiring Exxon assets in Chile but the Petrobras bid is large enough to defeat any rivals, as the Brazilian offer far outstrips the US$ 200 million minimum requested by the US oil firm.

Petrobras which several months ago registered the brand PetroChile for its operations in Chile currently holds no petroleum assets in the country.

Last month Petrobras failed to exercise a purchase option on 206 gas stations in Chile controlled by the Argentine-Spanish consortia, Repsol-YPF. The Colombian-based company Terpel successfully acquired those assets for 210 million US dollars.

The Exxon properties tied to this latest bid, which represents all of the US company's distribution operation in Chile, currently account for 16% of Chile's gasoline sales.

In Argentina Petrobras is investing 26.5 million US dollars in upgrading an Exxon refinery to comply with local environmental requirements and has a minimum share of the local fuel distribution system with the purchase of the Eg3 chain. However if it can finally acquire Exxon's 12% share it would rapidly become the second distributor, second only to YPF.

But the Brazilian state-owned company shopping spree is not only limited to South America: it recently acquired an Exxon refinery in Japan.

Tags:

  • Show Comments (1)

  • aryan

    very nice said…. you have very gud website but i never it before may be because you never posted your stories on laadi.com and i use this website for new and latest updated blog stories. anyway keep it up good work !!!

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Agriculture and Services Create 300,000 New Jobs in Brazil

Three hundred thousand new formal jobs were created in Brazil in the first half ...

List of 2.900 Brazilian Officials Charged with Fraud Has Judges, Governors and Mayors

Brazil’s TCU (Tribunal de Contas da União), a Brazilian watchdog agency, which is actually ...

Brazilian Amazon Little Entrepreneurs Get Their Own Microloans

Brazil is giving the green light to Accion International, a pioneer and leader in ...

US Firm Sells Amazon Trees by the Unit, But You Cannot Touch

RainforestForever.org, a U.S. based company, has launched a program, that according to the firm, ...

Brazil’s Lula Urges New Pope to Promote Social Justice

Brazilian President Luiz Inácio Lula da Silva sent a message to His Holiness, Pope ...

Analysts Lower Expectations to a 3% GDP in Brazil

The stagnation of the Brazilian domestic economy in the second half of the year ...

Brazilian Congress Once Again Snubs Venezuela’s Chavez

The opposition in the Brazilian Congress once again delayed on Wednesday, February 4, the ...

After End of Check Tax Brazil Looks for Ways to Fund Anti-Poverty Programs

The administration of Brazil's President Luiz Inácio Lula da Silva has suffered a major ...

81% of Brazilian Industries Are Investing in R&D This Year

Brazilian companies are expanding investment in innovation. This year, 81.2% of industries intend to ...