Abu Dhabi: The Abu Dhabi National Oil Company (Adnoc) on Wednesday announced a strategic investment in global storage terminal owner and operator VTTI BV (VTTI), which will see Adnoc acquiring a 10 per cent equity stake.
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.
The investment in VTTI provides Adnoc 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, 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.
Dr Sultan Ahmad Al Jaber, UAE Minister of State and Adnoc group chief executive officer, commenting on Adnoc’s investment 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.
“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.
“This investment further strengthens Adnoc’s strategic position in Fujairah and supports the continued development of Fujairah as a strategic hub for our operations,” Al Jaber said.
Adnoc’s latest announcement comes just days after the group 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. This will focus predominantly on the trading of products from Adnoc Refining.