The Abu Dhabi National Oil Company (ADNOC) is making what it describes as a “strategic investment” in the global storage terminal owner and operator, VTTI, acquiring a 10% stake in the Netherlands-based company. VTTI will continue to be managed by an independent management team led by chief executive, Rob Nijst.
The investment in VTTI gives ADNOC access to storage facilities across some of its key export markets, such as Asia, Africa and Europe, while also securing additional facilities at the port of Fujairah, its main storage hub.
H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group Chief Executive, commented: “As one of Fujairah’s largest storage operators, VTTI is a natural partner for ADNOC. This investment further strengthens our strategic position in Fujairah and supports the continued development of Fujairah as a strategic hub for our operations.”
In February this year, ADNOC announced that it is building the world’s largest single underground oil storage facility, with a capacity of 42 million barrels of crude oil, in Fujairah. Combined with ADNOC’s existing eight million barrels of storage in the UAE east coast port, the new facility is expected to strengthen the UAE’s position as a reliable supplier of crude oil as well as give ADNOC greater flexibility in managing delivery and trading operations.