The Saudi oil giant Aramco arrived in South America and its first foray has been the purchase of Esmax Distribución de Chile, a company that operates the Petrobras license in that country in the retail market.
Aramco, considered the most powerful oil company in the world, will acquire 100% of the shares of Esmax, in a move that will first have to be approved by the National Economic Prosecutor’s Office (FNE).
Chilean media have anticipated a competition between Aramco and the two main family groups that operate the oil business in the neighboring country to the south: the Angelini and the Luksic (Copec and Enex, respectively).
The Saudi state company registered a record net profit of US$161,000 million (150,450 million euros) in 2022, 46.5% more than the previous year, due to the rise in crude oil prices due to the war in Ukraine and greater demand of oil after the pandemic.
Mohammed Y. Al Qahtani, president of refining and marketing at Aramco, said the purchase “creates a platform to launch the brand, both in Chile and South America more broadly, unlocking significant potential to capitalize on new markets with our products.” .
The Saudi state company will start with a network of around 292 taps and 148 convenience stores by December 2022, under the name Spacio1. Esmax is the third largest fuel chain in the country, under the name Petrobras. As of June 2023, it had a market share of 14%.
Copec and its 684 taps are still ahead, with a share in the liquid fuels market that reaches 59.22%; and Enex, which with its 447 stations under the Shell brand escorts 25.9% of Chile’s distribution network.
Source: Larepublica
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