Vitol Issues 2010 Group Report (The Netherlands)

Vitol Group published its Group report for the period ended 31 December 2010.

Total traded volumes for the Group in 2010 rose 25% to around 394 million metric tonnes (mts) from 316 million mts in 2009, helped particularly by higher crude oil, electricity and natural gas volumes.

Revenues for 2010 totalled $195 billion, up 36% from $143 billion in 2009, bolstered by the increase in traded volumes and higher average oil prices of $79.50 a barrel versus $62 a barrel in 2009 (dated Brent basis).

In addition to growth in Vitol’s core trading businesses, both the tank terminal business VTTI and the exploration and production business grew in 2010.

Significant recent developments:

• 22 July 2010 – VTTI announced the construction of a new oil products terminal in Cyprus, to act as a regional trading hub as well as to supply the domestic market

• 8 Sept 2010 – VTTI became a joint venture following completion of Vitol’s sale of 50% of the business to MISC Berhad of Malaysia. New terminals opened for liquefied petroleum gas supply in Nigeria and for oil products in Canaveral, Florida, USA

• Vitol Aviation was launched, targeting the direct supply of aviation fuel to the airline industry, with successful market entry into a number of European airports, in addition to Vitol Aviation’s expansion in the USA

• Feb 19th 2011 – Agreement was reached by Vitol, in partnership with Helios Investment Partners, to purchase Shell’s downstream businesses in 14 countries in Africa, which include Morocco, Kenya and Tunisia. Two new companies will be formed, one in the retail and commercial fuels market, with Vitol and Helios holding an 80% shareholding and Shell a 20% shareholding and a new Lubricants company, with Vitol and Helios holding a 50% shareholding and Shell a 50% shareholding. Both businesses will continue to operate under the Shell brand

• Vitol’s exploration and production businesses delivered strong production via our Arawak assets. On the exploration side, successful drilling took place in Cameroon where new oil and gas discoveries were made, supplementing the growing portfolio of undeveloped oil and gas in our core area around the Gulf of Guinea in West Africa

• For the first time Vitol has published its carbon emissions from directly controlled operations. In 2009, the Group’s total emissions of CO equivalent metric tonnes, on an equity basis, were 271,425. Data for 2010 data will be published later in 2011.

Ian Taylor, President and Chief Executive of the Vitol Group, commenting on 2010 performance, said:

“While trading conditions remained challenging through much of 2010, the Vitol Group delivered a solid performance. We saw a 25% increase in core trading volumes, with strong growth in our crude oil, natural gas and electricity businesses.

We completed the sale of 50% of our storage and terminal business, VTTI, to MISC Berhad of Malaysia, giving us a solid foundation for future growth. Vitol Aviation and the recently announced acquisition of the downstream marketing businesses of Shell in 14 countries in Africa give us increased exposure to consumer markets as well as potential additional synergies with our core trading activity. We intend to invest and grow both these businesses.

Strong relationships and support from Vitol’s financial partners was reflected in the significantly oversubscribed $5.3bn European corporate revolving credit facility which we secured in October last year.

Looking ahead, Vitol expects trading conditions to remain competitive in 2011. Despite some lingering uncertainty, the global economic outlook is strong and can be expected to underpin strong growth in energy demand, particularly in the fast growing economies of Asia, the Middle East and South America. In the oil market, growth in demand and reduced inventories mean that increased supply from OPEC producers will need to be brought to market, to limit further increases in energy prices and consequent potential damage to economic growth.

Vitol Group will continue to look for opportunities to grow all aspects of our business. As the traditional oil majors look to re-shape their portfolios, with a bias to the upstream, this will continue to offer both trading potential and investment opportunities in selected high quality assets.”

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Source: Vitol Group, February 22, 2011;