Brazil Buys ExxonMobil’s Assets in Chile for US$ 400 Million

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An Esso gas station in Chile Petrobras, the Brazilian government-controlled oil and gas multinational, signed this week the purchase of ExxonMobil's assets in Esso Chile Petrolera and other associated Chilean companies.

Petrobras International Area Director Jorge Luiz Zelada said the operation involved US$ 400 million and will give the Brazilian company a 16% share of the Chilean fuel retail market in addition to a 14% share in the industrial area.

"With the deal, Petrobras now owns a network of 8,315 points of sale in six South American countries" said Zelada.

The package is made up of: 230 service stations, including 109 of which self-owned; about half of the total service stations have convenience stores; fuel distribution and sales at 11 airports; six fuel distribution terminals, two of which joint ventures. A 22% stake in Sociedad Nacional de Oleoductos, and 33% stake in Sociedad de Inversiones de Aviación.

Sales volumes in 2007 totaled approximately 74,000, 40,000, and 20,000 cubic meters per month in the retail, industrial, and aviation segments, respectively.

"The operation is important as it consolidates Petrobras' position in the South American market. We had little participation in Chile, a country where the economy is stable. With this deal, Petrobras now holds significant assets there," added Zelada.

In the coming five years, Petrobras plans to invest 90 million US dollars in Chile.

The deal reinforces Petrobras' image abroad, especially in Chile, a country to which the Company exported, in 2007, among other products, oil, LPG, natural gas, petrochemicals, and lubricants, totaling almost US$ 1.5 billion.

Petrobras has a network of almost 1.000 service stations in Argentina, Colombia, Paraguay, and Uruguay.

Mercopress

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