UAE's Adnoc buys stake in global oil storage operator

Abu Dhabi National Oil Company says it will acquire a 10% interest in VTTI
UAE's Adnoc buys stake in global oil storage operator
By Sam Bridge
Wed 07 Aug 2019 01:59 PM

Abu Dhabi National Oil Company (Adnoc) on Wednesday announced a strategic investment in global storage terminal owner and operator VTTI.

As part of the agreement, Adnoc will acquire a 10 percent equity stake in VTTI, with 45 percent held by IFM Global Infrastructure Fund and 45 percent by Vitol.

VTTI is an independent global owner of 15 hydrocarbon storage terminals across 14 different countries. The VTTI storage network holds around 60 million barrels of combined storage capacity, much of which is in locations that are complementary to Adnoc’s trade flows.

Adnoc said the investment gives it access to storage capabilities across some of its key export markets such as Asia, Africa and Europe while also securing additional facilities at the port of Fujairah, its main storage hub.

Dr Sultan Ahmed Al Jaber, UAE Minister of State and Adnoc Group CEO, said: “VTTI’s diverse portfolio of storage assets across key target markets such as Asia, Africa and Europe, provides us with direct access to our customers around the world, a key building block to accelerating Adnoc’s transformation into a more integrated and commercially-minded global energy player.”

He added: “As one of Fujairah’s largest storage operators, VTTI is a natural partner for Adnoc. This investment further strengthens Adnoc’s strategic position in Fujairah and supports the continued development of Fujairah as a strategic hub for our operations.”

Rob Nijst, CEO, VTTI said: “We are very pleased to have Adnoc as our new shareholder and look forward to benefiting from their regional expertise, working together to further grow our global network of terminals and supporting Adnoc’s trading and supply ambitions.”

The announcement comes just days after Adnoc confirmed the successful closing of its refining and trading agreements with ENI and OMV, under which a new trading joint venture, Adnoc Global Trading, has been established.

In February, Adnoc announced that it is building the world’s largest single underground project for oil storage, with a capacity of 42 million barrels of crude oil, in Fujairah on the eastern coast of the UAE.

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