Adnoc buys stake in VTTI oil storage unit
Adnoc is building the world's largest single underground project for oil storage in Fujairah.
Dubai - Abu Dhabi firm to acquire 10% stake, allowing it to secure storage in global export markets as well as at port of Fujairah
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 trading.
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 statement.
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.