Oil and Gas Air BP Expands Business in Brazil
Air BP, the aircraft fuels business of British oil mutli BP acquires further shares of Brazil's aviation fuel market by buying fuel assets at seven Brazilian airports. If the deal is approved by regulatory authorities, Air BP would have a 66 percent market share in the country.
Sao Paulo/Brazil – Air BP expands its presence in Brazil by buying several aviation fuel assets at seven Brazilian airports from Shell and Cosan. The US $ 100 million–deal adds Guarulhos, Recife, Viracopos, Curitiba and Pampulha airports to Air BPs service portfolio as well as increasing capacity at existing Air BP operations in Galeão and Brasília, the company stated. Subject tor regulatory approval the deals could be completed early in 2012, insiders expect.
This deal has BP controlling some 66 percent of the Brazilian aviation fuel market with presences at 18 airports in the country. It also includes the acquisition of assets such as storage tanks, vehicles and pipelines, allowing Air BP to market fuel direct to commercial airlines and general aviation customers at the new locations.
“Demand growth for aviation fuel in Brazil is well above the average global rates at around 16 percent. The purchase of these new assets will allow Air BP to accelerate its ambitious plans to grow its share of supply. This is a move welcomed by our customers as it will increase competition in the market,” said Ricardo Paganini, Air BP country manager in Brazil.
Apart from marketing aircraft fuels, BP also participates in Brazils recent petro–boom: This year, the British based oil multi gained government approvals for the purchase of significant deepwater exploration and production assets in the Campos and Camamu-Almada basins offshore and onshore in the Parnaiba basin.
“BP's investments in Brazil are fundamental to our growth agenda. This year has been key to that growth with the significant expansion of BP's exploration and production business in Brazil, the acquisition of CNAA and the Tropical BioEnergia ethanol businesses and now with the expansion of our aviation fuel business. Brazil is a country blessed with natural and human resources and a growing market and we are pleased with the opportunity to be part of the country's industrial development,” said Guillermo Quintero, BP Brazil’s regional president.