Oiltanking has announced its intention to divest PT Oiltanking Karimun on Karimun Island, Indonesia, to Novus Middle East, with the transaction set to take effect in the second quarter of 2024.
The decision to divest is aligned with Oiltanking’s Project Accelerate initiative, aimed at transforming the company’s business by creating a more diversified portfolio and accelerating growth. This strategic move follows a comprehensive review of strategic options for Oiltanking’s remaining assets and investments to unlock their value potential.
Bas Verkooijen, CEO of Oiltanking, commented on the divestment: “PT Oiltanking Karimun is one of our remaining assets and investments. Throughout our assessment, we considered all perspectives and concluded that transitioning PT Oiltanking Karimun to a new owner is in the best interest of our Indonesian business, employees, and shareholders.”
During the mandatory waiting period, the new owners will undergo onboarding to ensure the seamless and continued safe operation of the terminal. Oiltanking is committed to providing adequate support to local employees during this transition, with a conditional requirement in the divestment agreement ensuring that they maintain the same employment terms and conditions.
Verkooijen expressed gratitude towards vendor partnerships and local communities, acknowledging the valuable lessons learned from their collaboration. He also commended the local team of managers and operators on Karimun Island for their exceptional performance, particularly highlighting the leadership of President Director Pak Yos Effendy in strengthening customer focus.
“I remain impressed by their continued high performance,” Verkooijen stated. “Under the leadership of president director Pak Yos Effendy, our customer focus grew even stronger. Thank you.”
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