EMEA News
Vitol Looking to Cash in on Oil Glut With Sale of a Stake in VTTI
Vitol is looking to cash in on the oil storage boom resulting from the current oil glut, and sell a stake in its wholly-owned oil storage company VTTI, according to reports Friday.
"A partner makes sense for Vitol both financially and strategically," a source said to be close to the process was quoted by Reuters as saying.
The size of the available stake is currently unknown, but two sources were quoted as saying Vitol will remain the major holder.
The report also suggested that, beyond the immediate financial benefits, the sale of a portion of VTTI could help Vitol mitigate risk surrounding potential future changes in oil prices and shifts in demand.
VTTI says it has a storage capacity of 8.7 million cubic meters (54 million barrels), a number that will "rise to over 10 million [63 million barrels] in the near future."
In November 2015 Ship & Bunker reported that Vitol had purchased the other half of the VTTI venture from Malaysia-based MISC Berhad.
