ExxonMobil concludes $436m deal to acquire Indonesian firm FKT

ExxonMobil has completed the $436m acquisition of Indonesian lubricant manufacturing and marketing firm PT Federal Karyatama (FKT) from PT Mitra Pinasthika Mustika and its affiliate.

The acquired assets include the Federal Oil brand and a 700,000 barrel per year blending plant in Cilegon, Indonesia.

The development comes after ExxonMobil signed an agreement to acquire FKT in April.

Supported by 40 dealers, 3,200 Federal Oil centres and more than 10,000 retailers in Indonesia, FKT’s distribution network is expected to enhance ExxonMobil’s position in the country.

In addition, the acquisition will allow the company to build the Mobil lubricant brand in Indonesia.

ExxonMobil Finished Lubricants vice-president Russ Green said: “Indonesia is one of the fastest growing lubricants markets in Asia. Federal Oil’s expertise in motorcycle lubricants complements the Mobil lubricants offer in other sectors where ExxonMobil has significant experience, which will help us continue to grow and better serve our customers in Indonesia.”

The company will manage both the Mobil-branded lubricants business and the FKT business in the country.

ExxonMobil Indonesia president Louise McKenzie said: “The knowledge and experience of FKT employees and distributors will play a key role in achieving our lubricants business’ objectives in the region.”

The company operates the Arun gas field in Aceh Province under a production sharing contract (PSC) with the country’s regulatory body SKK Migas, while its affiliates operate the South Lhoksukon A and D, as well as the North Sumatera Offshore gas field.