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Brazil Petrobras Buys Chevron Assets In Chile For $12 Million

RIO DE JANEIRO -(Dow Jones)- Brazilian state-run energy giant Petrobras (PBR) agreed to U.S. oil major Chevron's (CVX) lubricant business in Chile for about $ 12 million, Petrobras said Thursday.

Chevron Chile SAC produces and sells lubricants under the Texaco brand name in Chile. The deal is expected to be concluded by the end of November, Petrobras said.

The deal boosts Petrobras' growing presence in Chile, which started in August 2008 with the purchase of ExxonMobil's (XOM) distribution and logistics assets in Chile.

Petrobras now owns a network of 230 service stations throughout Chile, as well as fuel distribution operations at 11 airports. In addition, the company gained stakes in six distribution terminals and other assets.

The Chevron deal will include a lubricant factory in Santiago, with installed capacity to produce 15,900 cubic meters per year. In addition, Petrobras will retain the use of the Texaco brand, formulas and a supply contract between Petrobras and Chevron for 24 months to ensure a smooth transition to Petrobras' Lubrax brand.

Petrobras also holds fuel distribution assets in Argentina, Colombia, Paraguay and Uruguay. Petrobras is the largest fuel distributor in Brazil.

-By Jeff Fick, Dow Jones Newswires; 55-21-2586-6085; jeff.fick@dowjones.com

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