OilVoice - Petrobras Announces Downstream Acquisition in Chile

Petrobras Announces Downstream Acquisition in Chile

Friday, August 08, 2008

Petrobras announces that it has signed an agreement for the purchase of ExxonMobil’s stakes in Esso Chile Petrolera and in other associated Chilean companies.

The agreement covers the fuels business in the retail, industrial and aviation markets:

· 230 service stations, including 109 in which Petrobras will have a real estate interest; about half of the total service stations include convenience stores.
· Fuel distribution and sales at 11 airports;
· Six fuel distribution terminals, four of which self-owned and two joint ventures.
· 22% equity interest in the Sociedad Nacional de Oleoductos, and 33.3% in the Sociedad de Inversiones de Aviación.
· Sales volumes, in 2007, of approximately 74,000, 40,000 and 20,000 m³/month in the retail, industrial, and aviation segments, respectively.
· Market share of 16% and 14% for retail and industrial segments, respectively.

Change in control is expected to occur in the second quarter of 2009, with the payment of approximately $400 million.

ExxonMobil s Chemical, Lubes and Specialties businesses in Chile are excluded from this agreement.

With the acquisition of these distribution and logistics companies, Petrobras ensures high-quality services to consumers, accumulating the excellence in customer service and the technical qualifications of Esso Chile’s 1,320-strong local workforce.

The deal reinforces Petrobras’ image abroad, particularly in Chile, to where we exported, in 2007, crude oil, LPG, natural gas, petrochemicals, and lubricants, totalizing nearly $1.5 billion. The main derivatives supplier and the only refiner in the country is the state-owned corporation ENAP, with whom Petrobras has strong relationship.

This acquisition consolidates the Company’s presence in the fuel distribution segment in Latin America, where, over and beyond in Brazil, it already operates in Argentina, Colombia, Paraguay and Uruguay, with a network of nearly 1,000 service stations. Petrobras is an integrated energy company and a global leader in deepwater oil exploration and production, present in 27 countries, in four continents (the Americas, Africa, Asia and Europe).

The agreement is aligned with Petrobras’ Strategic Planning, which calls for selective expansion in profitable businesses in priority regions, such as Latin America.