Global Processing

Brazil''s Petrobras buys part of Exxon''s Chile unit

August 26, 2008

The Associated Press reports that Brazil''s state-run oil company announced a deal to buy Exxon Mobil''s fuel distribution operations in Chile, continuing its expansion across Latin American energy markets. Petroleo Brasileiro SA said it will pay $400 million to takeover Exxon''s Chilean retail, industrial and aviation fuel businesses by June 2009, giving the Brazilian company control of 16 percent of Chile''s retail fuel market. Exxon Mobil last year sold about 134,000 cubic meters of fuel to the three sectors, sending 55 percent of that to retail outlets and gas stations. The deal means that Petrobras will acquire 230 Chilean service stations from Esso Chile Petrolifera and other Exxon affiliates, along with six fuel distribution terminals and 11 airport distribution and sales centers -- helping to "consolidate" the company''s presence in Latin American fuel markets. Exxon Mobil Corp. will keep its chemical, lubricant and specialty businesses in Chile.