The Netherlands: Summa Group, VTTI Sign Agreement to Build Major Oil Terminal

On October 20, 2011 the President of Russia Dmitry Medvedev and the Prime Minister of the Netherlands Mark Rutte attended the signing ceremony for a major long-term agreement between the Port of Rotterdam and Shtandart TT B.V. Shareholders of Shtandart TT B.V. are Summa Group (75%) and the Dutch company VTTI (25%).

The agreement, which was signed by the Summa Group Chairman Ziyavudin Magomedov and the President of the Port of Rotterdam Hans Smits, covers the building and operation of a new major crude and products oil terminal (Tank Terminal Europoort West, TEW) in thePort. The CEO of VTTI Rob Nijst was present at the signing ceremony.

Late in 2010 the Port of Rotterdam announced an open assessment procedure to select a company to construct and operate a new terminal at a site with a total area exceeding 55 hectares. The new terminal will The new terminal will operate as an ‘open hub terminal’ creating a trading platform for Urals crude oil.

Oil will be supplied mainly from Primorsk to Rotterdam by ice-class shuttle tankers. It’s envisaged that new terminal may in the future accommodate crude oil from other ports in the Baltic. Regional and local refineries, as well as other market participants, will be able to purchase Urals crude oil ex-tank or FOB Rotterdam. This new development reinforces the importance of Port of Rotterdam as a major logistics centre in the international oil trade.

After the initial permitting and design process, the construction work for the new terminal is expected to commence in 2013 resulting in an operational start-up in 2015.

The Port of Rotterdam is the largest port in Europe and one of the largest ports of the world with a 2010 turnover of 430 mln. tons.

Summa Group is a diversified private holding with significant investments in port logistics, engineering, construction, telecommunications, and in the oil and gas sectors. Its companies employ more than 10,000 people in almost 40 regions of Russia and abroad. Mr. Ziyavudin Magomedov is the founder and shareholder of the Group. The NCSP Group, where Summa Group is a shareholder, is the third largest port operator in Europe in terms of cargo turnover.

VTTI is a 50/50 joint venture between the Vitol Group and MISC Berhad. VTTI manages a network of oil storage terminals with a gross combined capacity of 6 million m3.

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Source: Port of Rotterdam, October 20, 2011.