Repsol signed the purchase agreement for a 40% stake in the Singapore-based lubricants manufacturer United Oil Company, which will manufacture and supply Repsol’s brand of products in Singapore, Indonesia, Malaysia and Vietnam.

The agreement will allow Repsol to increase its presence in Southeast Asia, one of the world’s largest and fastest-growing lubricants markets with sales of 3 million metric tons per year and an annual growth rate of 4%.

Southeast Asia, and particularly Indonesia, are key target markets for growth, fitting in with the Strategic Plan 2018–2020 goals to increase the international expansion of the Downstream Unit. Repsol aims to be a top-five player in Indonesia thorough the capabilities incorporated in this partnership.

The deal represents a third regional manufacturing hub to the ones Repsol already has in Spain and Mexico. United Oil Company has two lubricants plants, in Singapore and Indonesia, with total capacity of 140,000 metric tonnes.

The joint venture unveiled today plans to upgrade United Oil Company’s existing manufacturing plant in Indonesia and expand the network of dealers and distributors though a targeted sales and marketing drive. The alliance with United Global Limited will provide immediate access to new customer segments due to the complementary nature of both companies’ brands and product lines.

The partnership in Asia adds to the joint venture created last year with Bardahl of Mexico, completing the foundations for the company’s immediate strategic growth goals. Repsol aims to double its lubricants sales volumes to 300,000 metric tonnes, with 70% sourced from international business units.

Repsol has allocated 1.5 billion euros in investments for the period 2018–2020 for the growth of its Downstream unit, specifically its service stations, petrochemicals and lubricants businesses.

The agreement signed today is subject to the fulfillment of standard authorizations for this type of transaction.

About Repsol

Repsol is a global energy company present throughout the whole energy value chain. The company has upstream activity in 25 countries, produces 715,000 barrels of oil equivalent per day and has one of the most efficient refining systems in Europe. Repsol also operates low-emissions electricity generation assets, including photovoltaic and offshore wind power projects, and it is pioneering development of mobility initiatives to build new solutions and provide enhanced energy sources for transportation. Repsol is present in the United States since 2006. As of December 31, 2018, the company had 559 employees working in the country, owned mineral rights to a total net surface area of 3,111 Km2 and accounted for a net production of 113,539 barrels of oil equivalent per day. Net proved reserves in the United States amounted to 419.2 million barrels of oil equivalent.

About United Oil Company

United Global is an established independent lubricant manufacturer of a wide range of high quality, well-engineered products under its in-house brands such as “United Oil” as well as for third-party principals. The Group’s other core business is in the trading of base oils, additives and lubricants. It provides a wide range of lubricants and specialty fluids for automotive, industrial and marine applications, as well as metal working fluids, with a wide distribution network covering over 30 countries.