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VITOL 01
CONTENTS
VITOL
TRADING
02
04
06
08
10
12
14
16
18
19
20
42 Introduction
44 Terminals
46 Case study
Welcome
A physical trader
Global reach
Local understanding
Speed & flexibility
Partnership
People, systems & liquidity
Introduction
Crude Oil
Natural Gas
Case study
> ADDING VALUE TO
USA REFINERIES
22 LPG
23 LNG
24 Case study
> DOUBLING LPG SUPPLY
TO NIGERIA
26
27
28
29
30
31
32
Naphtha
Gasoline
Gas Oil & Jet
Fuel Oil
Coal
Power
Case study
> THE FUTURE OF COAL TRADING
IN SOUTHERN AFRICA
34 Carbon
35 Ethanol
36 Case study
> UTILITY ENERGY SUPPLY
38
39
40
41
Methanol
Chemicals
Metals and Minerals
Sugar
48 Refining
50 Case study
> A HIGHLY FLEXIBLE REFINING ASSET
JUST SOUTH OF THE STRAITS
OF HORMUZ
52 Shipping
MARKETING
54 Introduction
56 Vitol Aviation
58 Case study
> VITOL AVIATION ARRIVES
AT LONDON HEATHROW
60 Vitol Germany
62 Vivo Energy
64 Varo Energy
UPSTREAM
66 Introduction
68 Upstream
70 Case study
> VITOL POWERS THE
INDUSTRIALIZATION OF GHANA
VITOL FOUNDATION
72 Introduction
74 The Vitol Foundation
NETWORK LOCATIONS
76 Network Locations
GROUP PERFORMACE
300
250
200
150
100
50
2005
2006
2007
2008
2009
1500
300
1250
250
1000
200
2010
2011
2012
125
35
30
100
25
75
750
150
500
100
20
15
50
10
250
2008
2009
2010
2011
2012
25
50
2008
2009
2010
2011
2012
2008
2009
2010
2011
2012
2008
2009
2010
2011
2012
120
350
300
100
250
80
200
60
150
40
100
20
50
2004
2005
2006
2007
2008
2009
2010
Crude Oil
92
59
51
Fuel Oil
24
Natural Gas
42
LPG
Other trading
28
TOTAL
303
2011
2012
2004
2005
2006
2007
2008
2009
2010
2011
2012
TCO2
EFFICIENCY
E&P
69,689
0.0279
tC02e/bbl
Coal
101,539
0.2353
tC02e/te coal
Terminals*
96,450
0.0037
tC02e/m3
Blue Knight
24,404
0.0078
tC02e/m3
Travel
3,069
n/a
n/a
Oces
1,087
0.0095
tC02e/ft2
TOTAL
296,238
02 VITOL
A WARM WELCOME
The Vitol Group exists to help meet the energy needs of a
rapidly changing world.
One of the worlds largest independent energy trading
companies, we find, extract, refine, trade, store and transport
materials and resources from where supply is abundant to
where demand is great. We forge connections; we trade
physical commodities; we help make things happen and
markets work.
There, any apparent similarities with other oil and gas
conglomerates end.
We do things differently, and the difference lies less in what
we do than how we do it. This brochure is designed to take
you inside the world of Vitol and show you how our 360
expertise and unique culture combine to make us one of
the energy sectors business partners of choice.
VITOL
04 VITOL
A PHYSICAL TRADER
117m
TONNES OF CRUDE OIL SALES IN 2012
5m+
VITOL
06 VITOL
GLOBAL REACH
REGIONAL CENTRES
30+
3,316
VITOL
Theres more to global reach than having a presence all over the world. Global reach is
the ability to see the bigger picture, gain local insights and anticipate how changes in
demand in one part of the world will affect supply to another.
A particularly cold winter in Asia means that demand for kerosene jet fuel escalates
as people turn to it for domestic heating. Because we know when, where and how this
happens, were able to source, trade and deliver alternative supplies of jet fuel for the US
and European markets which otherwise would have been supplied from Asia.
08 VITOL
LOCAL UNDERSTANDING
350
VITOL
Ghanas offshore fishermen told us that our seismic surveying ship was a problem for
them, particularly at night, when their small wooden boats were effectively undetectable
by Vitols seismic vessel. We commissioned local people to help us make simple metal
radar reflectors for the fishing boats so that they could be seen and avoided at all times,
letting them carry on with their business, while we carried on with ours.
10 VITOL
5,495
200+
VITOL
With existing shipping unable to convey the required tonnage through the inland
waterways of the Amazon river, we spoke to ship owners and marine architects
and commissioned vessels of wider beam and shallower draft.
12 VITOL
PARTNERSHIP
1,025
VITOL
With just days to spare, Vitol sourced, shipped and delivered jet fuel, gasoline and diesel
to meet the needs of a nation. When the incumbent fuel supplier to Guinea-Conakry
proved unable to deliver, Vitol stepped in at the last minute and helped the country avoid
the very real possibility of a stock out. Our strong position in NW Europe, combined with
our substantial in-tank reserves, financial liquidity and ability to ship product at a days
notice, meant that we were able to coordinate our resources and react immediately.
14 VITOL
$303bn
OF REVENUE IN 2012
47
CONSECUTIVE YEARS OF
PROFITABLE OPERATION
VITOL
Local knowledge, experienced traders and fully integrated data management systems allowed us to
understand the underlying reason for a big surge in demand for propane in the Bordeaux region. The
regions plum brandy producers were rushing to dry the plums after a particularly wet harvest. If you
know why demand increases, you know how and when to meet it.
16 VITOL
TRADING
Trading is the engine of our business, and energy in many
different physical forms is the resource we trade the most.
In fact, almost all of the Vitol Groups activities are driven by
trading from exploration, to shipping, to storage. More than
simply a thread linking every aspect of what we do, trading is
the conduit through which we receive and share vital market
information, maintain the balance and flow of our liquidity,
and forge lasting, rewarding relationships with customers all
over the world.
We take pride in our ability to take on
difficult, complex projects and deliver
effective solutions quickly and
transparently. Because our partnership
model is based on collective responsibility,
we are careful to assess risk exposure on
the ground, in local markets where we
can see the real relationship between
cause and effect.
VITOL 17
18 VITOL
CRUDE OIL
What we do
Vitol is a significant participant in global crude oil
markets and crude oil is the largest part of Vitols
total energy portfolio. In 2012 we sold 117m tonnes
of crude oil, which amounts to around 2.4m barrels
per day.
Where we do it
Vitol trades crude oil globally. We have a presence
and on the ground expertise wherever crude is
produced, traded, stored and supplied to customers
for refining. This means that we operate in Africa, the
Middle East and the Far East, as well as in Russia, the
Caspian, and North and South America.
117m
261m
VITOL 19
NATURAL GAS
What we do
Our gas teams operate across three continents
Europe, Asia and the Americas in both pipeline
product and LNG, and we follow the business model
that characterises every part of the Vitol Group:
physical trading based on transportation and
logistics, storage and arbitrage.
With over17 years experience in the gas business,
we have grown our physical supply to more than
25 BCM per annum in Europe alone, supported and
enabled by storage capacity acrosssix countries.
We work with producers, importers, wholesalers,
distributors and industrials on a global basis. Our
unique independence, combined with our ability
to deliver innovative solutions, has made us the
partner of choice for a number of important industry
participants.
Where we do it
We deliver gas to customers in virtually every country
across Europe utilising an extensive transportation
and storage portfolio.
Across the Atlantic we source and trade Canadian
gas, and facilitate the LNG trade around the US Gulf
region, where we have invested heavily in storage.
How we do it
The scale of our operations and extent of our
geographical coverage allow us to take an holistic
view of market changes, leverage economies of
scale and match supply to demand wherever and
whenever the need arises. We have built on the
relationships in place with our energy industry
partners, and invested in new relationships and
innovative contractual arrangements with suppliers,
pipeline and storage operators in the gas sector,
25 BCM
30 MCM
20 VITOL
VITOL 21
22 VITOL
LPG
What we do
Vitol is one of the largest international LPG traders.
We have the worlds largest pressurised vessels and,
indeed, the largest fleet.
At the core of our operation is a fleet of 9 fully
refrigerated VLGCs and 27 pressurized vessels,
built primarily within the last ten years to Vitols
specifications. These enable us to offer excellent
flexibility and, importantly, speed and reliability.
Refiners tend to have limited LPG storage on site, and
with increasingly stringent flaring regulations they
need to be able to ship the gas to market quickly.
Where we do it
Our fleet ships considerable volumes to countries
where bottled gas is popular such as Portugal,
France, Germany, Poland, Morocco and Turkey as
well as supplying cargoes to the US, China, West
Africa, East Africa and the Caribbean.
Vitol also has access to LPG storage in West Africa,
through a joint venture that provides infrastructure
for the gas to be marketed inland, and which will see
significant reductions in flaring in Nigeria.
How we do it
Our size is not and never has been an end in itself:
it is simply a consequence of our success and the
strength of our customer relationships. The Vitol
LPG team is truly multinational, and we use local
knowledge and insights to anticipate demand and
react swiftly and efficiently. Increasingly, we work
with oil and gas companies as a logistics solutions
provider, and we are known for our ability to bring
innovative thinking to life through decisive action.
9.3m
27
VITOL 23
LNG
What we do
LNG will continue to be the fastest growing sector
of the international energy business for many
years. Delivering over 2.3 million tons of LNG in
2012, Vitol has re-affirmed its position as the largest
independent trader of LNG. Vitol continues to supply
our customers both on long-term and spot bases as
their requirements change. Our ability to integrate
with the Groups natural gas business, to optimise
shipping and manage cross-commodity pricing
provides a wealth of opportunities to meet our
customers needs.
The continually expanding business is now balanced
between term sales and spot transactions. With a
growing portfolio we are committing to more longerterm agreements. Operating these agreements
enables Vitol to offer more flexibility and optimise the
flow of LNG both inside the portfolio and externally.
How we do it
Vitols independence is important to our LNG
customers. Unlike many of the largest, nonindependent operators, we are impartial and
uncompromised, with no upstream or
downstream conflicts.
Our business is based on market fundamentals, and
our customers benefit from our ability to respond
with speed, flexibility and reliability.
24 VITOL
VITOL 25
26 VITOL
NAPHTHA
What we do
Vitol trades and moves approximately 17m tonnes
of naphtha globally per year. The volume bought
and sold has grown steadily over the last five years.
We source, trade and move naphtha feedstock and
clean condensate for petrochemical customers,
refineries and large industrial concerns, leveraging
the logistics advantages available to us through the
scale and flexibility of our global shipping, strategic
storage and arbitrage operations. We strive to be
the leader in both supply and delivery contracts to
ensure the best value for our customers.
Where we do it
We operate and trade with every producing country
in the world. We lift from Saudi Arabia, the Emirates,
the Russian Federation, South America and North
and West Africa to name a few. We facilitate the
requirements of refiners, state-owned oil companies
and marketers in North America, Europe, Russia, the
Middle East, Africa and the Far East and are working
hard to meet the growing needs of refineries and
ethylene plants in China and India.
We have a growing number of partnerships in Russia
where we have an exclusive naphtha terminal in
Kaliningrad and the former Soviet states, Asia and
North Africa.
We have a truly global presence and principal
offices in Houston, Geneva, Singapore and London.
Consequently, we are able to optimise our arbitrage
activity through 24 hour coverage of world markets.
How we do it
We bring all our core oil trading values, skills and
services to the naphtha market: clients rely on us for
our physical expertise, our professional operations
staff as well as our absolute commitment to deliver
products that are on specification and on time.
Our ability to always deliver is a reflection of our
commitment to building long term relationships,
the flexibility afforded by our shipping and storage
resources, our financial security and our complete
range of skills and tools.
We have the skills and track record to respond
to opportunities swiftly, reliably and, whenever
necessary, innovatively.
6.3m
VITOL 27
GASOLINE
What we do
Every day, Vitol trades over 950,000 barrels of
gasoline, more than twice the UKs entire daily
demand. At any given time, we will have between
50 and 100 gasoline tankers on the worlds oceans
and we are a significant supplier of gasoline to the
USA. We are experts in identifying added value and
arbitrage opportunities and we aim to develop longterm strategic relationships, either by supplying or
by offtaking and often adapting to changing local
specifications to ensure security of supply.
Where we do it
We operate, trade and participate in tenders in
every producing country in the world. We own and
lease extensive storage in Singapore, Fujairah (UAE),
Houston, California, Florida, the Netherlands, Nova
Scotia, Latvia, Malaysia and Spain. We serve the
requirements of refiners, state-owned oil companies
and marketers in North and South America, Europe,
the Middle East, Africa and the Far East and
are working hard to meet the growing needs of
refineries and marketers in China and India. We have
a growing number of partnerships in Russia and the
former Soviet states. Our markets are global and
include California, one of the most highly regulated
gasoline markets in the world.
How we do it
In a non-commoditised market, where gasoline
specifications differ according to state and country
regulations and where change is increasingly driven
by environmental concerns and a growing demand
for low sulphur products, market intelligence
really matters. Our experience, combined with our
understanding of worldwide energy markets, gives
us an in depth, real-time awareness of the specific
needs of end users. Our logistics reach and ability
to act decisively wherever demand occurs means
were able consistently to understand and meet
those needs.
23.2m
950,000
28 VITOL
Where we do it
We have offices in Houston, Geneva, London,
Singapore, Bahrain, Dubai and Moscow and we
serve the key distillates markets in Asia, Europe,
the Middle East, South America and the US. We are
actively expanding our business in Africa and China.
How we do it
Excellent market intelligence underpins each and
every trade we make. We are keen observers of
economic, political and consumer trends on both
macro and micro levels; we understand how cold
weather in Asia affects supply to Europe; we try to
predict, anticipate and react to international, national
and regional imbalances wherever in the world they
occur.
Drawing on our global trading, shipping and
storage resources and expertise in the US, South
America, Europe and Asia, we are ideally placed to
move cargoes and realise the opportunities arising
from regional and global imbalances. Our detailed
knowledge of specifications particularly important
in jet fuel gives us a real advantage in achieving
better trading performance.
Global arbitrage has long been a core Vitol strength.
Today, it is a structural feature of the middle distillates
market and, as such, Vitol is fully qualified and
equipped to optimise trading opportunities both
now and in the future.
26.5m
70%
VITOL 29
FUEL OIL
What we do
Vitol is one of the most long established and active
independent physical traders in the global fuel oil
market. Every month we ship 3m tonnes of fuel oil.
Approximately 50% of our fuel oil business is based
on trading feedstocks, bought by refiners for further
upgrading.
We have a large and increasing share of the bunker
market, driven by the establishment of strong long
term relationships with fleet owners. We have also
built an extensive and expanding network of storage
terminals both owned and leased in key strategic
locations.
Where we do it
Vitol trades fuel oil globally. We have extensive
storage facilities including Rotterdam, Fujairah, the
Caribbean and Singapore. We source high sulphur
fuel oil from markets such as Mexico, the Middle
East and the former Soviet Union, to ship to Asia and
take low sulphur fuel oil from the USA and Europe,
often to Asia. Feedstocks are frequently sourced
from Europe, North and West Africa and shipped
to refiners in the US Gulf Coast. To facilitate these
movements we charter over 450 vessels per annum.
How we do it
We have the flexibility, speed and logistics expertise
that our customers need and expect. Our longevity
and success stems from our ability to add value
beyond simply moving physical product. Vitol is
resolutely customer focused, providing fuel oil
solutions and stocks all over the world. We also have
the experience and in-house blending expertise to
meet utilities, bunker buyers and refiners widely
varying demands for different blends of fuel oils and
feedstocks.
We are able to optimise the value of a sellers stream
and to meet and exceed the demands of refinery,
bunker and vessel owners. We succeed by being
consistently dynamic, innovative and well-informed.
Around 40%
OF THE WORLDS FUEL OIL IS
CONSUMED BY SHIPS
Leading
SUPPLIER OF FEEDSTOCKS TO REFINERS
30 VITOL
COAL
What we do
Having entered the coal market in 2006, Vitol has
grown rapidly to become one of the worlds top 5
coal traders.
In recent years, the coal market has become
increasingly liberalised, with new grades of coal
and pre-financing instruments creating a more
sophisticated environment and one that is ideally
suited to Vitols experience and expertise. We cover a
wide range of specific origins for both steam coal and
anthracite, have a presence in every major mining
region and are successfully meeting the diverse
needs of customers around the world.
As well as investing significantly in production
output, we have signed long term contracts with
producers in both the Far East and Europe and are
now a major trading presence in steam coal.
Where we do it
Vitol partners, finances and owns mines in Indonesia,
Canada, South Africa, Colombia and Russia. We
supply across the Asia Pacific region and into
all major European power utilities. Vitol is also
participating in the development of major new port
and loading facilities in Southern Africa , Colombia
and North America.
How we do it
Our flexibility, liquidity and ability to manage our
financial risks allow us to work in more challenging
environments, both as a producer and a buyer, and
to trade in forward markets up to five years ahead.
We are also applying models employed in oil and
natural gas; by focusing on the physical aspects,
we can add significant value in areas such as coal
finance and logistics.
Vitol is also focused on other areas central to the
sector. In dry freight we add real value to our coal
presence by taking longer term positions in Cape,
Panamax, and Handy sized vessels and complement
this by being an active player in the shipping futures
market. Additionally, Vitol also now has a presence in
the biomass market and is involved in shipping and
marketing of wood pellets.
Our approach is personal and trusted. We build longterm relationships with local partners and we invest
in a shared future.
25.2m
VITOL 31
POWER
What we do
We access power station capacity (by supplying
fuels in exchange for power) transport power
cross-border and operate as a power trader. We
also have the flexibility to offer products that mimic
power station dynamics and economics.
There is a natural synergy with our existing activities
in natural gas, coal and carbon emissions, and by
combining these functions we are able to offer a full
range of multi-commodity solutions to power plant
owners and developers, utilities and large industrial
users, generators and suppliers.
Where we do it
Vitol has developed physical and financial positions
throughout Europe. This augments our existing
power activity in the US, where we are active in
trading power forwards and options in the Eastern
states. We are also active across the UK, France,
Germany, Switzerland, Italy, Austria, Slovenia and the
Benelux countries, with a reach that is broadening to
extend further into Eastern Europe.
How we do it
Take, for example, an investor in a power plant who
wants to lock in a fixed rate of return. Vitol might
propose a solution whereby we take the power the
plant generates in exchange for fuel supply and
emissions credits. The investor gets the comfort of
a margin over a defined term, and is protected from
volatility on power prices and the fuel needed to
produce it.
322 TWh
POWER TRADING
GENERATION
UNIT
POWER
FUEL &
CARBON EMISSIONS
& TOLLING FEE
VITOL
GAS
MARKET
COAL
MARKET
EMISSIONS
MARKET
32 VITOL
VITOL 33
34 VITOL
CARBON
What we do
Vitol has one of the largest and most diverse carbon
project portfolios in the world and our involvement
and expertise in carbon markets is global and
comprehensive.
Where we do it
Whilst Vitol has a global reach, we remain very
much a hands-on, physical trader with a local
presence where it matters. With carbon desks in
Geneva, Singapore, Beijing, Dubai,Moscow,Houston
and London we cover the global carbon market
from Europe to US, Japan to Australia and
everywhere in between.
How we do it
Vitol is one of very few participants in the market
whose involvement extends all the way from project
inception to trading activity right through the value
chain. The size and diversity of our projects portfolio
They include:
> Industrial companies looking to monetise
their carbon position.
> Utility companies seeking liquidity in
the marketplace.
>350m
350
CARBON PROJECTS
INVOLVING VITOL GLOBALLY
Vitol
No.1:
VITOL 35
ETHANOL
Industry Context
The U.S. continues to implement the Renewable
Fuels Standard with dramatic effect. The renewable
fuel market has reached more than 1 million barrels
per day, a wholly unprecedented volume,under the
direction of a programme that calls for a volume of
2.3 million barrels per day by 2022. This programme
now mandates a renewable content of 9.63% in all
road transportation fuel, up from 9.23% in 2012.
2012 also saw the U.S. market shift from a net
exporter in 2011 to a large net importer, importing
around 40,000 barrels per day of ethanol, mainly
originating from Brazil, with peak imports reaching
over 80,000 barrels per day.
36 VITOL
VITOL 37
improvements to ensure
optimum pricing.
> Review supply facilities and
38 VITOL
METHANOL
What we do
Methanol is a highly versatile commodity
and one for which demand is growing rapidly.
Methanol derivatives find use in both energy and
petrochemical applications. In the energy sector
the market for methanol is expanding rapidly as
methanol is used in transportation fuels such as
MTBE, bio-diesel and gasoline blending. With biofuel mandates increasing yearly, methanol demand
for this application will continue to grow. Through
DME (dimethyl ether) methanol can be used as an
LPG substitute, particularly in bottled gas markets,
and in MTO (Methanol to Olefins) methanol is
replacing higher cost naphtha as a feedstock for
olefins. In the traditional petrochemical sector
methanol derivatives are used in everything from
adhesives to paints and polyester.
Where we do it
Vitol has methanol teams in Houston, Geneva,
Rotterdam, London, Dubai, Singapore, and Beijing.
Vitols key partnership in Oman Trading International
supports its growing methanol business via its
offtake from the Salalah Methanol Company. We also
have long term supply and offtake relationships with
producers and consumers in the US, Europe, Africa,
the Middle East and Asia.
How we do it
We focus on building long-term relationships
based on our ability to provide security of supply
from multiple supply sources. Large trading flows
combined with comprehensive storage in key
locations and our status as one of the worlds
largest charterers of shipping mean we can meet
practically any demand, anywhere, any time.
2m
VITOL 39
CHEMICALS
What we do
Vitol is a major and growing supplier of bulk raw
materials from Asia and the Middle East to European
and US chemicals consumers.
We deal directly with petrochemical producers and
consumers, receiving shipments into our worldwide
logistics facilities and using our reach and market
knowledge as a global energy trader to identify and
act upon arbitrage opportunities.
Our business is focused on two core products:
> Benzene used among other things in the
production of styrene, phenol and cyclohexane.
> Paraxylene a main feedstock for the manufacture
of polyester.
Where we do it
Vitols chemicals team operates on a global basis
across Europe, the Middle East, Asia, the Far East and
the US. We have strategically situated storage in
Rotterdam, Houston and Korea.
How we do it
We have an in depth understanding of world energy
markets and can react to changes in the chemicals
marketplace, quickly and decisively. This knowledge
and speed of response, combined with our ability
to move physical product, means we are able to
tolerate price fluctuations and better manage our
physical price risk exposure.
3.3m
40 VITOL
Where we do it
Our areas of operation are global. China is a major
recipient of most of our ores and concentrates.
How we do it
Vitols status as a global energy trader gives Euromin
access to new markets and allows the business
to build on synergies generated within the Group.
Euromin has a broad spectrum of customers and
the capability to take raw materials to smelters and
refined metals to end users backed by the financial
stability, risk management expertise and global reach
of Vitol.
40+ Countries
VITOL SUPPLIED A COMPREHENSIVE
RANGE OF METAL PRODUCTS (INCLUDING
SPECIALIST) TO CUSTOMERS IN OVER 40
COUNTRIES WORLDWIDE
VITOL 41
SUGAR
What we do
Vitol is a significant participant in the world sugar
market, with a wealth of experience in the sector
dating back to 1992. Today we trade up to 5% of
the worlds physically traded sugar in free market
areas, adding value to trade flows from producers in
the Western and Eastern hemispheres to markets
in North Africa, the Black and Baltic Seas and the
Middle and Far East. Annually, we move 1.5m tonnes
and trade 2.5m tonnes of raw sugar in bulk. We
spot charter and time charter vessels ranging from
20,000 to 50,000 tonnes.
Where we do it
Vitol works with producers in Brazil, Central America,
Thailand, India and South Africa, and end-users in
North Africa and the Middle East, Russia and the
other former Soviet Republics, the Subcontinent,
South East Asia and the Far East to source and place
their physical requirements.
How we do it
Vitol is ideally placed to draw on our knowledge
of both energy and sugar, at a time when ethanol
production is growing due to the mandated use of
alternative fuels.
We work with clients to help them to take advantage
of changing supply and demand patterns for
agricultural commodities. This could include making
sense of a market such as India, which alternates
from being a major exporter to a significant importer,
as well as how to access opportunities that continue
to develop in countries such as China.
We invest time in building long term relationships
with our customers, helping where necessary with
finance initiatives and working together to anticipate
and react to changing market conditions.
42 VITOL
VITOL 43
44 VITOL
TERMINALS
What we do
VTTIs mission is to own and/or operate
bulk logistics assets such as terminals and
pipelines, to the highest safety and
environmental industry standards, while
maximizing return for shareholders. Today,
VTTI is active in 14 countries around the
world and offers access to a total capacity
of around 8.6m m. This capacity is set to
increase to over 13m m in the coming
years through a proactive expansion and
construction programme*.
Our strength derives from our knowledge
and understanding of the energy sector.
We know what our customers require of a
storage facility because of the interaction
with one of our key customers, the Vitol
trading team hence our focus on the
flexibility, loading capabilities and
infrastructure needed to maximise trading
opportunities, leverage economies of
scale and make swift and decisive use of
market insights.
Where we do it
VTTI is an integral part of a bigger picture
that might see, for example, Vitol oil from
Russia flow through Vitol pipelines to a Vitol
ship destined for a VTTI terminal in
Amsterdam. In building a global network,
we have pursued a policy of investing in oil
and gas terminals and associated pipelines
at the major import/export locations or
trans-shipment points around the world.
8.6m m3
How we do it
Our holistic view of the energy sector
allows us to accurately bridge the gap
between asset people, who take a long
term view, and traders, who have to make
instant decisions. We never cut corners,
always look to protect our assets and the
environments and communities in which
theyre located, and actively seek out those
customers whose business synergies
stand to deliver the greatest mutual
commercial benefit.
Our Vitol Group expertise and experience
encompasses upstream, trading, utilities,
shipping and terminals, and so we are able
to coordinate and direct resources,
maximise efficiencies, shorten turnaround
times and reduce costs.
Above all, we deliver safe, intelligent, flexible
solutions often born of local knowledge
and expertise. From the vibrant Russian
export market; to the hub of Europes oil
industry; to the entry and exit point of the
Arabian Gulf; to the access point for Latin
Americas growing internal market VTTI is
adding lasting and measurable value
safely and reliably.
Around 13m m3
TOTAL CAPACITY OF VTTI BY 2016
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46 VITOL
VTTI, in partnership
with a local maritime
conglomerate, has
created a world-class
terminal at Tanjung
Bin, Johore.
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REFINING
What we do
Vitol has been involved in refining since it
was established in 1966, both through
direct ownership and indirectly through
processing agreements.
Vitols growing refining presence is focused
on three specific areas:
> Owned and Operated: Vitol currently
owns and operates over 150 kbd of
refining assets in Fujairah, Cressier
and Antwerp.
> Crude Supply Agreements and Stock
Financing: in the US, we supply
Coffeyville and Wynnewood refineries up
to 150,000 bpd of crude and provide
working capital for stock financing and
ongoing investment. Our global energy
trading presence, combined with our
strong balance sheet, allows us to tailor
specific agreements that can provide
benefits to any refining counterparty.
> Processing Agreements: these allow Vitol
to lease unused refining capacity to try
and benefit from positive refining
margins. Our global access to crude and
feedstock may provide attractive crude
options, and the products produced can
be made available to our product trading
teams. The refinery profits from the
processing fee and the ability to lock in a
refining margin for that part of its
capacity that is leased to Vitol.
Further detail
Vitols first actual ownership and operation
of a refinery came when we acquired what
became the North Atlantic Refining
Company (NARL) in Newfoundland. Our
highly successful ownership and operation
of this refinery over 13 years gave us the
experience and expertise to expand further
into the refining sector.
80,000
THE FUJAIRAH REFINERY IS NOW ABLE
TO REFINE 80,000 BARRELS PER
DAY AT MAXIMUM CAPACITY
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SHIPPING
What we do
We are physical traders and we move
energy from markets that are in surplus to
markets that are in deficit, across borders
and oceans. We move it safely,
competitively and efficiently, with due care
for the environment.
A world-class shipping operation is an
essential part of the management of this
supply chain, underpinned by the depth of
operational experience that exists across
the shipping team.
Where we do it
We have commercial and operational
offices in five of the worlds most strategic
shipping locations - London, Singapore,
Houston, Geneva and Bermuda - giving us
a leading strategic and logistical edge in a
global market where time zones blend
into one.
5,495
VOYAGES IN 2012
How we do it
Through close contact with our trading
groups and utilization of our own market
intelligence, Vitol is perfectly positioned to
anticipate worldwide freight movements in
volatile shipping markets.
Mansel Ltd (www.mansel-ltd.com) is the
commercial shipping arm of Vitol. This
allows the trading groups to provide
flexibility to their customers as well as
offering risk management solutions for
Vitols freight exposure.
Within Vitol, the shipping team is not only a
service provider, transporting commodities
in the safest, most efficient and cost
effective way possible but is a competitive
business in its own right.
Mansel contracts vessels using various
financial structures for varying periods
from a few weeks to a number of years.
The vesselsare underpinned by the core
cargo flows of the trading groups, however,
these contracts need to be commercially
viable in their own right. The aim of the
shipping group is to maximize the
utilisation and thereby the returns,of these
assets under our commercial control.
Shipping profitability is maximized and
Vitol shipping exposure is managed using a
range of third-party and internal cargoes,
contracts of affreightment and derivatives.
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MARKETING
Physical trading will always be at the heart of our company.
It is the engine that drives Vitol and gives us the global
presence, flexibility and market intelligence to quickly identify
and capitalize on opportunities. Equally, we have always had
expertise right across the value chain. Today, as many of the
established major players in the oil and gas sector look to
move away from refining and downstream marketing, we are
ideally positioned to build on our ability to maximize value in
the chain through both wholesale and retail marketing
initiatives. Ian Taylor Vitol Chief Executive
Our Marketing activities have grown
significantly in recent years. Today, we
supply aviation fuel to many major airlines
at hub airports around the world. We are
also marketing Shell-branded fuels and
lubricants across much of Africa. We have
opened up new wholesale markets via our
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VITOL AVIATION
1m+
1.6m
1m
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VITOL GERMANY
Where we do it
Based in Hamburg, Vitol Germany brings
products into ARA tankage and supplies
bunker fuel and gas oil by barge in the port
areas around Hamburg, Bremerhaven and
Weser. Our new bunkering operation
means we can now provide fuel directly to
shipping customers. With our 75%
ownership of the Varo Energy refinery at
Cressier, we are also able to supply
products by rail from Switzerland to
Germany, ensuring security of supply on a
year-round basis.
How we do it
Reliability, continuity of supply and the
ability to meet demand regardless of
weather conditions are the hallmarks of
Vitol Germanys operation. We have the
flexibility and resourcefulness to act fast,
access to significant and growing storage
capacity, and a highly experienced team.
By 2016, we expect to be distributing up to
one million tonnes of product per year.
1m
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VIVO ENERGY
Where we do it
Vivo Energy is currently incorporated on a
national basis in 14 countries - Madagascar,
Burkina Faso, Cape Verde, Cote dIvoire,
Guinea, Mali, Mauritius, Morocco, Senegal,
Tunisia, Botswana, Namibia, Kenya and
Uganda - but with more to come as we are
actively engaged in adding countries to
this portfolio. We operate 1.2 million cbm of
storage and 1,300 retail sites, employ 2,500
people, market over 7 billion litres of Shell
fuel every year and provide quality Shell
fuels and lubricants to our customers
across much of Africa.
How we do it
Combining the strength and profile of the
Shell Brand with a flexible, dynamic and
entrepreneurial business style gives us a
unique competitive advantage in the fast
growing African markets.
We are ambitious, responsible and
safety-oriented in everything we do. Our
aim of doubling the size of the business
within the next five years is eminently
achievable because we have a very clear
and direct business vision: to focus, to
simplify and to perform.
1,300
2,500
EMPLOYEES
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VARO ENERGY
Where we do it
In addition to refining, storage and pipeline
assets in Switzerland, Varo Energy benefits
from the regional and worldwide logistics
expertise of the Vitol Group, including Vitol
Germany and VTTI. Consequently, we are
able to store and supply products to the
Swiss market via ARA tankage and the
Rhine, import directly through the global
Vitol network, find new and growing
markets for Cressiers fuel oil and support
Cressiers inland reach with VTTIs
coastal presence.
How we do it
In combination with Vitol and VTTI, Varo
Energy benefits from a broader and larger
slate of crude oils and a wider network to
find new markets for Cressier products.
We have an experienced, motivated and
expert management team and we have
the tools and systems in place to manage
operational and financial risk effectively
in any scenario. Varo Energy will grow
by increasing local market share and,
over time, may even invest in other
European refining, marketing and
logistics businesses.
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UPSTREAM
Vitol has been building its upstream oil and gas business for
20 years. Today, we have a diversified portfolio of exploration,
appraisal, development and production assets in the Former
Soviet Union (FSU) and West Africa.
Currently our operated production is
around 10,000 barrels of oil equivalent
per day and our proved plus probable (2P)
reserves and discovered resources are
in excess of 340 million barrels of oil
equivalent (net).
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UPSTREAM
Business context
As demand for oil and gas rises, largely
driven by economic growth in the
developed world and the rapid maturing of
emerging markets, so the challenges
facing the upstream industry become
more complex.
Geographical proximity means that the
FSU states are increasingly meeting the
rising demands of European consumers.
Today, the FSU region holds 40% of the
worlds proven reserves of crude oil outside
of OPEC.
In our other major focus area, Africa, where
around 10% of the worlds oil is produced,
vast tracts of acreage remain under or
unexplored both onshore and offshore.
Oil and gas activity is accelerating across
the region.
Vitol through Arawak Energy and Vitol
E&P has the right people on the ground,
in the right place, at the right time. We are
ideally positioned and resourced to make
the most of these new opportunities with
original thinking and decisive action.
Where we do it
Our assets in the FSU are managed by
Vitols subsidiary, Arawak Energy, which
provides all of our production today, is an
established and trusted operator of
onshore fields in Russia, Kazakhstan and
Azerbaijan, and has recently acquired a
40% stake in 16 licences in Ukraine. Our
other upstream unit, Vitol Exploration and
Production (Vitol E&P), focuses today on
offshore exploration and development in
West Africa, including Ghana, Cameroon
and the Ivory Coast.
Our people
Our upstream teams succeed because we
employ dynamic people with the ability to
spot opportunities and bring innovation to
bear in solving tough problems.
15
200m boe
OF RESERVES AND DISCOVERED
BUT UNDEVELOPED RESOURCES
IN THE PORTFOLIO TODAY
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200
250+
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NETWORK LOCATIONS
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Designed,
Designed,
written
written
and produced
and produced
by CONNORGODDARD
by CONNORGODDARD
www.vitol.com