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Adnoc acquires 10% stake in terminal owner, operator VTTI

VTTI's storage facilities are spread across Asia, Africa and Europe and at the port of Fujairah, its main storage hub in the UAE

Adnoc owns stake in VTTI alongside Vitol and IFM GIF.
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Adnoc owns stake in VTTI alongside Vitol and IFM GIF.

UAE’s state-owned oil producer, Abu Dhabi National Oil Company (Adnoc), has acquired a 10% stake in storage terminal owner and operator, VTTI BV (VTTI), with the remaining 90% owned by IFM Global Infrastructure Fund (IFM GIF), an investment vehicle managed by IFM Investors, and Vitol, in 45% stakes each.

VTTI owns 15 hydrocarbon storage terminals in 14 countries and its storage network owns 60 million barrels — 9.5 million cubic metres — of combined storage capacity.

Through the investment in VTTI, Adnoc will have access to storage facilities across Asia, Africa and Europe and additional facilities at the port of Fujairah — VTTI’s main storage hub in the UAE.

UAE Minister of State and chief executive officer (CEO) of Adnoc Group, Dr. Sultan Ahmed Al Jaber, said: "We are delighted to be entering into this strategic investment opportunity in VTTI, alongside Vitol and IFM GIF, which will further complement the development of ADNOC’s integrated global trading platform while also delivering a solid financial return.”

Al Jaber added: "This investment further strengthens Adnoc’s strategic position in Fujairah and supports the continued development of Fujairah as a strategic hub for our operations."

The acquisition will boost Adnoc’s incremental revenue, margin and cost saving opportunities through the trading, transportation and storage of its products.

Commenting on the deal, CEO of VTTI, Rob Nijst, 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 news comes days after Adnoc announced that Italy's Eni and Austria’s OMV had completed the 35% acquisition of equity interest in Adnoc Refining, followed by the establishment of the joint venture, Adnoc Global Trading, which will sell products from Adnoc's Ruwais refinery to Asia and emerging markets.

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Construction Week - Issue 747
Aug 03, 2019