MercoPress. South Atlantic News Agency

Petrobras buys Agip's liquid gas operations.

Petrobras, the Brazilian state owned oil company purchased for 450 million US dollars all assets of Agip in Brazil, a company belonging to the Italian corporation ENI.

The operation, which involved several months' negotiation, included the acquisition of the residential liquid gas distribution plus a chain of 1,600 gasoline stations.

Petrobras Distribuidora will now hold 21,8% of the carafe gas market and will increase its participation in the liquid fuel distribution market from 31,4% to 35,4%.

Petrobras began thinking of participating in the cooking gas distribution market back in 2002 when prices shot up and there were strong suspicions of an alleged cartel between the six companies that dominated 95% of the market.

In the official release Petrobras argues that the acquisition avoids "the possibility of a major concentration in the home cooking gas market, an essential asset for the lowest income groups".

Besides, being out of the home cooking gas market "is not logic" said Jose Eduardo Dutra, Petrobas president.

Petrobras Distribuidora thus becomes the third most important player in the market behind Brazilian Ultragas with 24,3% and Dutch company SHV, 23,6%. However the operation does not include ENI's oil exploration and production activities.