TotalEnergies sells its fuel distribution business

TotalEnergies has reached an agreement to sell its fuel distribution business in Brazil to SIM Distribuidora, a well-known Brazilian company. The transaction involves a network of approximately 240 gas stations and several petroleum products and ethanol storage facilities.

SIM Distribuidora is part of Grupo Argenta, a well-known player in the Brazilian fuel distribution sector, and currently manages more than 500 gas stations, in addition to being involved in the lubricants and aviation services sectors.

This move is in line with the selective strategy of TotalEnergies' Marketing & Services division, especially in the retail network business. The company is focused on consolidating its position in key regions where it has a large market share, streamlining its global operations and focusing on areas with greater growth potential. Despite the divestment, TotalEnergies will maintain its presence in Brazil through its lubricant blending and distribution business and continue to serve the Brazilian market in this capacity.

The acquisition is subject to regulatory approval from the relevant Brazilian authorities. The transaction will consolidate SIM Distribuidora's position in the fuel distribution market, while allowing TotalEnergies to focus more on its core markets.

TotalEnergies has been operating in Brazil for nearly 50 years, operating through five subsidiaries with more than 3,500 employees in various business areas such as exploration and production, natural gas, renewable electricity, lubricants and chemicals. The company's exploration and production portfolio in Brazil currently includes 11 licenses, 4 of which are operated by the company. TotalEnergies' crude oil production in Brazil is expected to reach approximately 140,000 barrels of oil equivalent per day in 2023.