KHALEEJ TIMES, Thursday, Aug 8, 2019 | Zul Hijjah 7, 1440
Adnoc buys stake in VTTI oil storage unit
Abu Dhabi National Oil Company (Adnoc) on Wednesday said it will acquire
a stake in VTTI, a Vitol-backed global energy storage company, as part of the
state-run UAE energy firm's transformation drive and its expansion into oil
Adnoc will acquire a 10 per cent stake in VTTI, allowing it to secure storage in
global export markets as well as at the port of Fujairah, a regional bunkering
and storage hub in the UAE.
Under the deal both Vitol and IFM Global Infrastructure Fund, an investment
vehicle managed by IFM Investors, will each own a 45 per cent stake in VTTI.VTTI
owns 15 terminals located at major hubs across 14 countries - including the
Netherlands, the United States, Asia and Africa , and its storage network holds
about 60 million barrels of combined storage capacity.
The deal "will further complement the development of Adnoc's integrated global
trading platform, while also delivering a solid financial return", Dr Sultan bin
Ahmad Sultan Al Jaber, UAE Minister of State and Adnoc Group CEO, said in a
Adnoc has eight million barrels of storage in Fujairah and is also building the
world's largest single underground project for oil storage there.
The Abu Dhabi Crude Oil Pipeline, with a capacity of 1.5 million bpd, carries
the bulk of the UAE's crude production to Adnoc's storage and loading facilities
in Fujairah, bypassing the Strait of Hormuz, which is further north.