UPDATE 1-Brazil Petrobras says in talks to buy Exxon assets

(Adds no comment from Exxon)

SAO PAULO, March 3 (Reuters) - Brazil's state-run oil and gas company Petrobras (PETR4.SA: Quote, Profile, Research)(PBR.N: Quote, Profile, Research) confirmed on Monday in a market statement that it was in talks with U.S. Exxon Mobil Corp (XOM.N: Quote, Profile, Research) to buy its local distribution assets known by the name Esso.

The talks were widely rumored by the market but this is Petrobras' first confirmation of the negotiations.

"Exxon Mobil does not comment publicly on market rumors or speculation," said Exxon spokeswoman Prem Nair. "It would be inappropriate to comment on any particular opportunities that we may or may not be considering at this time." (Reporting by Reese Ewing and Michael Erman in New York; editing by Jim Marshall)