Petrobras officially begins operations in Chile
Brazilian state-controlled oil giant Petrobras has officially started operations in Chile and is aiming to grab a 20
% share of the market.
Petrobras entered the Chilean fuel distribution market with the inauguration of a service station in Santiago. The
company paid $ 400 mm for US-based ExxonMobil's stake in Esso Chile Petrolera and other units in the Andean nation.
"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.
Petrobras plans to introduce new fuels, such as ethanol, alcohol and biodiesel, 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 got 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 bn worth of oil, liquefied
petroleum gas (LPG), natural gas, petrochemicals and lubricants to the Andean nation last year.
