Empresas Copec signs fuels and lubricants deal with ExxonMobil

Chilean company Empresas Copec has signed an agreement with ExxonMobil to produce and distribute lubricants and fuels in Colombia, Ecuador and Peru. A diversified industrial holding company, Empresas Copec is engaged, through subsidiaries, in fuels, forestry, fishing and other industries. Empresas Copec is a major player in the liquefied fuels, lubricants, liquefied and natural gas distribution business, in Chile, Colombia and Panama. Recently, it acquired the LPG business of Spain’s Repsol, through its subsidiary Abastible.

The Pacific coast of South America is “a zone of enormous opportunities, where there are no structural limitations to achieving leadership in each of its countries,” Copec CEO Lorenzo Gazmuri said.

The agreement with ExxonMobil includes the transfer of ExxonMobil’s fuel business in Colombia and Ecuador to Copec, including plants and industrial installations. Copec said its investment in the deal could mean up to USD747 million. Under the agreement, Copec will take control of ExxonMobil Andean Holding LLC and its subsidiaries, as well as ExxonMobil Ecuador. Copec plans to resell the fuel business it acquires from ExxonMobil in Colombia as soon as possible, the company said.

In addition to broad participation in the fuels and lubricants business in the Andean region, the agreement includes supplying fuel to Jorge Chavez International Airport in Lima, Peru, and the participation of ExxonMobil in auctions run by Copec for the supply of fuel to Chile.

The transfer of control is set to take place in the second half of 2017.