Upon completion of the transaction, VTTI will be 10% owned by ADNOC, 45% by IFM Global Infrastructure Fund (IFM GIF), and 45% by Vitol


Image: Officials from Vitol, ADNOC, and IFM during agreement signing ceremony. Photo: courtesy of Abu Dhabi National Oil Company.

The Abu Dhabi National Oil Company (ADNOC) has signed an agreement to acquire a 10% stake in global storage terminal owner and operator Vitol Tank Terminals International (VTTI).

Upon completion of the deal, VTTI will be 10% owned by ADNOC, 45% by IFM Global Infrastructure Fund (IFM GIF), and 45% by Vitol. Financial terms of the deal were undisclosed.

VTTI owns 15 hydrocarbon storage terminals

VTTI owns 15 hydrocarbon storage terminals across 14 countries worldwide, and holds a total of 60 million barrels of storage capacity.

ADNOC Group CEO 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.

“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.”

ADNOC expects the deal to provide access to storage capabilities across some of its key export markets such as Asia, Africa and Europe as well as secure additional facilities at the port of Fujairah, UAE, its main storage hub.

Additionally, the acquisition of the stake will significantly contribute to the development and growth of ADNOC’s global marketing, supply and trading platforms, ADNOC noted.

VTTI CEO 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.”

Recently, ADNOC has completed two separate deals with Eni and OMV, totalling $5.67bn (£4.67bn) for stakes of 20% and 15%, respectively in ADNOC Refining.