Independent tank operator Oiltanking has sold a 289,000m3 storage facility in Merak, Indonesia, stating that oil subsidies made the business unprofitable.
‘Due to the subsidies on petroleum products and other market developments, we are unable to capture these volumes and consequently unable to meet the business model of Oiltanking,’ a spokeswoman for Oiltanking said. ‘The resulting loss-making business is not sustainable for the company.’
The selling price or any other details on the sale, including the buyers have not been disclosed.
The operator, which is a subsidiary of Marquard & Bahls AG, a privately owned German company, is now looking to construct a 760,000m3 terminal in Karimun, Indonesia, for the storage and handling of clean petroleum products and black oil.
The project is expected to be commissioned by the third quarter of 2015.