International energy company ExxonMobil has reached an agreement to buy Indonesia-based motorcycle lubricants manufacturing and marketing firm PT Federal Karyatama (FKT) from PT Mitra Pinasthika Mustika and its affiliate.
As part of the deal, ExxonMobil will acquire PT Federal Karyatama’s Federal Oil brand and a blending plant in Indonesia that is capable of processing 700,000 barrels of oil equivalent (boe) per year.
ExxonMobil Fuels & Lubricants Company president Bryan Milton said: “This acquisition, combined with our existing premium Mobil lubricant brand, will help us continue to grow and better serve customers in Indonesia.
“The knowledge and experience of FKT employees and distributors will play a key role in achieving that objective.”
Established in 1988, FKT has a nationwide distribution network of around 40 dealers, 3,200 Federal Oil Centers and more than 10,000 retailers.
ExxonMobil Lubricants senior vice-president Nigel Searle said: “Driven by strong economic development and an expanding middle class, Asia is expected to represent 70% of global lubricant demand growth over the next decade.
“We continue to make strategic investments across our lubricant value chain to ensure ExxonMobil is well positioned to meet increasing global lubricant demand.”
The deal builds on the company’s existing Mobil lubricant brand offering in Indonesia.
The transaction is scheduled to be completed in Q3 2018.
