MercoPress. South Atlantic News Agency

Petrobras begins operations in Chile and targets 20% of fuels’ market

The Brazilian oil giant purchased Exxon-Mobil’s assets in Chile

Brazilian government controlled Petrobras entered the Chilean fuel distribution market in Chile with the inauguration Tuesday of a service station in Santiago. The company paid 400 million US dollars for US-based Exxon-Mobil’s stake in Esso Chile Petrolera and other units in the Andean nation and has targeted a 20% share of the market.

“We are not comfortable if we are in third or fourth place, we barely have 16% in the service station area and 6% in the area of large consumers, so there is a world out there to be fought for” Petrobras Chile general manager Vilson Reichemback told the online edition of the La Tercera newspaper.

Petrobras plans to introduce new fuels, such as ethanol, alcohol and bio diesel, and promote natural gas vehicles in Chile, Reichemback said.

The Brazilian oil company’s entry into the Chilean market “will benefit consumers” through increased competition between suppliers, Energy Minister Marcelo Tokman said.

Among the Esso Chile businesses that Petrobras will operate is a network of 230 service stations, of which 109 are owned by dealers, as well as a fuel distribution and sales network covering 11 airports and six large fuel terminals, four of which are company-owned.

Petrobras also obtained a 22% stake in pipeline operator Sociedad Nacional de Oleoductos and a 33.3% interest in Sociedad de Inversiones de Aviacion.

The Brazilian energy company previously had limited operations in Chile, exporting 1.5 billion worth of oil, liquefied petroleum gas (LPG), natural gas, petrochemicals and lubricants to the Andean nation last year.