ADNOC has acquired a 10% equity stake in VTTI, providing it with access to storage capabilities across key exports markets in Asia, Africa and Europe.
Following the transaction VTTI will be owned 10% by ADNOC, 45% by IFM Global Infrastructure Fund and 45% by Vitol.
VTTI owns 15 hydrocarbon storage terminals across 14 different countries with a combined capacity of 9.5 million m3, much of which is in locations complementary to ADNOC's trade flows.
The investment also secures ADNOC additional facilities at the port of Fujairah, UAE, its main storage hub. This transaction also significantly contributes to the development and growth of ADNOC's global marketing, supply and trading platforms, providing greater access to knowledge and capabilities that will further enable ADNOC's growth plans.
H.E. Dr. Sultan Ahmed Al Jaber, UAE minister of state and ADNOC CEO, says: '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.
'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.
'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.'
By expanding its international storage capabilities and reach, ADNOC will move closer to its customers, allowing it to be more agile and respond quickly to market needs and dynamics. It will also unlock incremental revenue, margin and cost saving opportunities from the trading, transportation and storage of its products, giving ADNOC better control over where, when and how its products are being supplied to key markets and customers.
Rob Nijst, CEO VTTI, adds: 'This exciting development is testament to the professionalism and dedication of our VTTI colleagues. Since VTTI was founded 13 years ago, we have worked tirelessly to build a market-leading hydrocarbon storage company, capable of delivering the highest standards of service in key strategic locations. 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.'
VTTI will continue to be managed by an independent management team led by CEO Rob Nijst.
A new deepwater midstream frontierRegulatory update for US tank terminal operators Capturing hidden storage opportunities Make room for the boom From short to long - the US oil revolution Optimising the US Gulf Coast energy potential Storage stability amid a mixed production picture in the Americas Storage for Europe's energy transition Storage for a growing product market Should the industry rethink storage tank fire protection