JAKARTA -ExxonMobil agreed to purchase one of Indonesia’s largest motorcycle lubricant manufacturer, PT Federal Karyatama, enabling the oil and gas giant from the United States to reach the international market.
The acquisitions include Federal Oil brand lubricants and a 700,000 barrels per annum blending facility in Cilegon, West Java. ExxonMobil will acquire a 100% interest in PT Mitra Pinasthika Mustika Tbk. and affiliates.
ExxonMobil expects the transaction to be completed in the third quarter of this year.
“Asia Pacific is one of the fastest growing lubricant markets in the world,” said Bryan Milton, president of ExxonMobil Fuels & Lubricants Company, as quoted by businesswire.com, Monday (30/4/2018).
No mention of how much funds ExxonMobil spent on their purchases.
PT Federal Karyatama was founded in 1988 and has nearly 40 dealers, 3,200 Federal Oil Centers, and 10,000 retailers in Indonesia.
In March, ExxonMobil’s management met Vice President Jusuf Kalla. One of the discussions is the investment plan in the petrochemical sector.
“He [Exxon Mobil] is also certainly talking about what he is doing, elsewhere including some he has an investment plan in the petrochemicals,” said Vice Presidential Team Leader Sofjan Wanandi at the Vice President’s Office on Thursday (22/3/2018).
Sofjan did not specify the investment in question. According to him, the arrival of management of Exxon Mobil was to thank the Government of Indonesia in celebrating 120 years of existence in the country.