Vitol to acquire Rotterdam splitter from Koch Supply & Trading
LONDON (Reuters) -- Commodities trader Vitol has agreed to buy an 85,000-bpd condensate splitter in the Netherlands from Koch Supply and Trading, a subsidiary of US conglomerate Koch Industries, Vitol said in a statement on Tuesday.
The world's largest oil trader has been expanding in the downstream and retail sectors over the last few years as it seeks outlets for its growing traded volumes.
Such assets also allow the trader to access new markets and to forge longer-term supply deals as opposed to ad hoc ones, the traditional base of its business.
Vitol's traded oil volume grew by 16% to over 7 MMbpd last year.
The splitter, located in Rotterdam, is a specialized refining asset that processes very light oil, known as condensate, into higher value products such as naphtha that is used in the petrochemical industry and gasoline blending.
Vitol did not disclose the value of the deal.
"The splitter is a well-run asset in a good strategic location at the heart of Rotterdam's oil and petchem industry. Its acquisition will enhance our offering to our customers across the region," Russell Hardy, Vitol CEO for Europe, Middle East and Africa, said in the statement.
Vitol has a refining capacity of 390,000 bpd through various JV investments in northern Europe, Asia and the Middle East. It owns and operates the Cressier and Bayernoil refineries via subsidiary Varo Energy and has a majority stake in a refinery in Fujairah, United Arab Emirates.
Reporting by Julia Payne and Bengaluru Newsroom; Editing by Mark Potter
Comments