After signing an agreement to buy a 40% stake in United Oil Company Pte. Ltd. for an undisclosed amount, Repsol SA formed a joint venture with United Oil's parent company, United Global Ltd.
Singapore-based United Oil manufactures and distributes lubricants.
The joint venture plans to upgrade United Oil's manufacturing plant in Indonesia and expand the network of dealers and distributors, the Spanish integrated oil and gas company said in a Sept. 30 release. The joint venture will also manufacture and supply Repsol-branded products in Singapore, Indonesia, Malaysia and Vietnam.
According to Repsol, this expansion fits the goals of the company's Strategic Plan 2018–2020, which aims to increase the international expansion of its downstream unit. The company allocated €1.5 billion in investments for 2018-2020 to fund the growth of the unit, specifically its service stations, petrochemicals and lubricants businesses.
The agreement is subject to the fulfillment of standard authorizations.
