ADNOC announced that it will acquire a 10% equity stake in storage terminal owner and operator VTTI. VTTI owns 15 hydrocarbon storage terminals in 14 countries, with 60mn barrels of storage capacity.
Once the transaction closes, ADNOC will own a 10% stake in VTTI, IFM Global Infrastructure Fund will own 45%, and Vitol will own the remaining 45%.
"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," ADNOC Group CEO Sultan Al Jaber said.
In a press release, ADNOC Group noted that VTTI's network complements ADNOC's trade flows. The acquisition will provide ADNOC access to storage terminals in key export markets including Asia, Africa, and Europe. It will secure additional facilities in Fujairah, a regional storage hub in the UAE.
"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," Al Jaber added.
The acquisition is part of ADNOC's strategic push to grow its downstream portfolio and geographic focus, while encouraging cooperation with international partners.
In February, ADNOC announced that it would build the world's largest single underground oil storage project, with a capacity of 42mn barrels of crude oil, in Fujairah.