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Vitol to sell 50% stake in VTTI oil tank business for $1.2bn

25 October 2016 11:15 (UTC +04:00)

Baku - APA-Economics. Vitol, the world’s biggest independent oil trader, said on Monday it agreed to sell a 50 per cent stake in its VTTI oil tank business for $1.15bn, the Financial Times reported.

The deal with Buckeye Partners, one of the largest US refined oil products pipeline companies, comes just over a year after Vitol took full ownership of VTTI by purchasing a 50 per cent stake for $830m, writes Gregory Meyer in New York.

VTTI owns and operates about 54m barrels of oil tanks at 13 terminals on five continents, Vitol said. Some storage assets are held by VTTI Energy Partners, a publicly traded master limited partnership.

Chris Bake, VTTI chairman and also a Vitol executive, said: “Buckeye brings in a wealth of terminalling experience and knowledge which will further strengthen the strategic position of VTTI as we continue to invest in its growth.”

The deal will give Buckeye and Vitol equal board representation and voting rights in VTTI, which will continue to be run independently under Rob Nijst, chief executive.