Conoco and Exxon interested to buy 40 percent stake in AAF

American Energy companies Conoco Phillips and ExxonMobil Oil Indonesia have expressed their interest in buying a 40 percent stake in Aceh-based fertilizer company PT AAF, the Investor Daily Indonesia reported in its Wednesday edition.

Both Conoco and Exxon have oil and gas fields in Aceh, and Exxon used to be the main supplier of gas to AAF. But two years ago Exxon stopped supplying gas, which led to the stoppage of production at the AAF.

During its shareholders meeting last week, AAF owners decided to sell 40 percent shares, owned by four foreign countries, of the company to the majority shareholder, the Indonesian government.

AAF was established by five Southeast Asian countries: Indonesia (60 percent), Malaysia (13 percent), Thailand (13 percent), Philippines (13 percent) and Singapore (1 percent).

If Indonesian government is not interested in buying the 40 percent stake, it can be offered to third parties.

A source told the Investor Daily that both the American companies have already conveyed their willingness to buy stake in AAF.

“In fact, Conoco and Exxon want to enter into the AAF. Conoco is particularly very serious in joining the AAF.” The source said on Tuesday in Jakarta.

Another source said that the Indonesian government will take decision on whether it will buy 40 percent stake in AAF or to offer it to third parties. The 40 percent stake will cost Rp 70 billion for the purchaser.(*)