Kilang Pertamina Internasional, the refining and petrochemicals division of Indonesia’s state-owned energy company Pertamina, acquired a stake in base oil producer Patra SK from South Korea’s SK Enmove on Tuesday, Indonesian media reported.
Patra SK began in 2006 as a joint venture between Pertamina Patra Niaga, Pertamina’s downstream holding company and SK Lubricants, as SK Enmove was known at the time. The JV has an API Group III+ base oil plant in Dumai, Riau province, operational since 2008.
KPI’s acting corporate secretary Milla Suciyani said in a statement the acquisition is part of Pertamina’s plan to strengthen supply chains that includes capacity increases, greenfield refinery construction and acquisition.
Ownership of Patra SK is now split between KPI with 14%, Pertamina Patra Niaga 35% and the rest with SK Enmove.
SK Enmove’s parent company SK Innovation recently merged the lubricant and base oils business with another subsidiary, SK On, the conglomerate’s electric vehicle battery unit, which reportedly struggled financially last year. Last month’s announcement about the merger also said the company would be seeking to raise cash by selling shares to outside investors.