Vitol Seeks Partner in VTTI Oil Storage Business
Vitol, the world's top oil trader, is looking to sell a stake in wholly owned storage company VTTI, in a bid to cash in on one of its most profitable businesses in the current downturn in crude prices, several banking and industry source said on Thursday.
Oil storage companies have lately enjoyed booming business as traders and oil companies held increasing amounts of crude and refined products in tanks in the face of huge oversupply.
Besides the immediate financial rationale, a stake sale could also allow Vitol to mitigate risk surrounding future oil prices and demand changes. For buyers, such a deal could offer an opportunity to access Vitol's large trading operations and VTTI's many storage outlets around the world.
"A partner makes sense for Vitol both financially and strategically," a source close to the process said.
Vitol's sale plan comes after the company last August acquired the other half of VTTI from Malaysian shipping company MISC Bhd for $830 million, taking full control of the company headed by Chief Executive Rob Nijst. The deal was completed in November.
The sources did not say what size of stake Vitol is interested in selling or at what price, but the Swiss-based trader will remain majority holder in any case, two of the sources said. The process is being run by Citi, they added.
A Citi spokesman declined comment and a Vitol spokeswoman also would not comment.
VTTI BV has total gross storage capacity of 54 million barrels, including assets under construction, the company said last year.
(Reporting by Ron Bousso and Arno Schuetze)
