Abu Dhabi Oil company (Adnoc) acquired a 10 percent stake in VTTI, a Vitol-backed global energy storage company on Wednesday.
Adnoc’s acquisition is considered to be a part of the new strategy adopted by the state-run oil firm, to bring a transformation in its conservative mode of approach and expand into oil trading.
Adnoc’s acquisition allows it to secure storage in global export markets as well as at the Fujairah port, a regional storage hub in the United Arab Emirates.
“The deal will further complement the development of Adnoc’s integrated global trading platform, while also delivering a solid financial return,” Adnoc Chief Executive Officer Sultan Al Jaber said in a statement.
The rest of the shares in the newly acquired global markets platform of Adnoc belong to Vitol and IFM Global Infrastructure Fund, an investment vehicle managed by IFM investors, each owning 45 percent of the stake respectively.
VTTI, a fast growing independent provider of energy storage founded in 2006, owns 15 terminals across 14 countries. These include locations in the Netherlands, the United States, Asia and Africa. The net storage capacity of the network is about 60 million barrels. Adnoc which currently has only 8 million barrels storage capacity, will undoubtedly benefit from this deal.
According to reports, Adnoc is presently constructing the largest single underground project for oil storage. The project when completed will have the ability to hold 42 million barrels of crude oil.
Adnoc has been making efforts in the recent past to become more adaptable to changes across the globe. The firm is changing with market changes by investing in international oil firms and creating strategic partnerships with major oil companies.