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Brazilian energy giant Petroleo Brasileiro (Petrobras) S.A. has signed an agreement to purchase ExxonMobil's stake in Esso Chile Petrolera and other associated Chilean companies.

The acquisition, worth $400 million, means Petrobras will own 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.

ExxonMobil’s lubricant, chemical, and specialty businesses in Chile were not part of the agreement, Petrobas said.

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

* 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.

* 22% stakes in Sociedad Nacional de Oleoductos, and 33% stakes in Sociedad de Inversiones de Aviación.

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

* 16% and 14% of the retail and industrial market shares, respectively.

Speaking about the acquitision, Jorge Luiz Zelada [pictured], Petrobras' International Area Director said “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.”

The takeover is expected to take place in the second quarter of 2009, together with the payment of approximately $400 million. Zelada said the company also plans to invest a further $90 million in Chile over the next five years as the intention of Petrobras is "to discover new opportunities in the country”.

The 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. The company also acts as a bunker supplier in Bahía Blanca and Montevideo.

The agreement is also in line with Petrobras’ Strategic Plan, which calls for expansion in regions such as Latin America.