Shell sells Uruguay operations

Brazil’s state-run oil giant Petrobras said yesterday it has completed the purchase of Royal Dutch Shell’s fuel-and-distribution operations in Uruguay, acquiring 89 service stations across the country.

Petróleo Brasileiro said in a statement here that the contract allows it a year to install the Petrobras logo at the gas stations acquired from the English-Dutch energy company. It said it would keep existing employees.

Petrobras signed agreements last December to buy Shell’s fuel business in Colombia and acquire the fuel-and-distribution operations in Paraguay and Uruguay. Authorities at the time said the agreements were worth US$140 million.

Petrobras also took control this week of natural gas company Gaseba Uruguay, a subsidiary of Gaz de France that was established 11 years ago and now pipes gas to more than 40,000 clients in Montevideo.

Uruguayan authorities said Petrobas would invest US$24 million to expand that distribution network over three to four years, but the Brazilian company had no comment.