VTTI announces plan to build a new oil product terminal and make Cyprus a major regional oil trading hub

Vitol Tank Terminals International (“VTTI”), today announced plans to build a major oil import and distribution terminal in the industrial area of Vassiliko, Cyprus.

The terminal, which is set for completion in 2012, marks an initial investment of more than €100 million in the Cyprus economy and will establish the island as a major oil trading hub in the region.

Built to world class standards, with the highest safety and environmental standards in place, it will be 100% owned, funded and operated by VTTI and will provide around 340,000 cubic metres of storage for gasoline, diesel, jet fuel and fuel oil.

VTTI has extensive experience of building and managing oil terminals, with a network of 11 terminals in five continents, including a major new terminal in Florida, USA, which opened in April 2010. In Europe, VTTI has major terminals in Rotterdam, Amsterdam, Antwerp and Ventspils, Latvia.

Speaking about the new Vassiliko terminal, CEO of the Vitol Group Ian Taylor said:

“We are pleased to be proceeding with this project. This is an important project for Cyprus. While global trading conditions remain challenging, a world class terminal built and operated in a professional way, will provide jobs and potential for long term investment. The terminal will play an important part in supplying regional markets to meet growing energy demand, as well as supplying the local market in Cyprus.

“VTTI has been evaluating a number of countries before deciding where to invest for an Oil Terminal. Cyprus geographical location and its membership of the EU, is the right place for this project and we look forward to developing our business here. We would like to thank the President of the Republic and the Government of Cyprus, for their continuous support for this project".

Work is scheduled to start on the Vassiliko facility in the next few months. In addition to storage tanks, a jetty will be constructed to handle seagoing vessels.

Oil products will arrive at the new terminal from the international oil markets and current plans for the terminal are focused on re-exporting to regional markets, as well as supplying the inland market in Cyprus.

VTTI has a proven track record in the successful operation of terminals and the company has already made it clear that it intends to make a number of investments in key local projects to provide additional benefits for the community.

Vitol Opens Florida Terminal to Increase Oil Product Supply for the U.S. Market

The Vitol Group recently announced the opening of the Seaport Canaveral Terminal on the east coast of Florida. The state-of-the-art terminal, built at a cost of around $130million, will deliver an independent supply of petroleum products to the state, create new jobs, and provide an important boost to the states economy. It sits on 36 acres and is 60 miles from Orlando.

Check out the below video for more information on the terminal and footage from the opening event.

KPC and Vitol Sign LNG Supply Deal to Meet Summer Demand

Today Vitol S.A. (Vitol) signed an agreement with Kuwait Petroleum Corporation (KPC) to supply liquefied natural gas (LNG) to the state of Kuwait to help the state meet peak electricity demand during the summer months of April through October 2010 to 2013.

The four year agreement helps KPC meet the state of Kuwait's growing energy demand as the state implements its ambitious development plans, which will require more clean energy supplies, including natural gas.

While KPC is following through on its plans for increasing local natural gas production and providing clean supplies of feedstock for the state's power generation facilities, this supply agreement will help meet demand for gas during the interim period.

KPC believes that importing LNG to meet peak summer demand is a sustainable solution to help reduce emissions and improve local air quality.

KPC is delighted to have secured supplies from a reliable global partner like Vitol, and looks forward to strengthening its long-term relationship with the company.

Vitol is very pleased to have been awarded this contract, which reinforces its commitment to partner with KPC, as it looks to meet its LNG supply requirements.

Trafigura, Vitol stopping Iran gasoline sales-sources

Oil trading firms Trafigura and Vitol are stopping gasoline sales to Iran, industry sources said on Monday, joining a growing list of suppliers that have halted sales under threat of U.S. sanctions.

Vitol decided to stop participating in new tenders to supply Iran at the start of the year, the company said in a statement e-mailed to Reuters. It was completing existing spot supply deals that were made before the start of the year, it added.

Check out the Reuters story for more information

Blueknight Energy Partners, L.P

In November 2009, Vitol, Inc. acquired a 100% interest in SemGroup Energy Partners G.P., LLC and 12.6 million subordinated units in SemGroup Energy Partners, L.P. (SGLP) from Manchester Securities Corp., a security brokerage firm. From December 1st 2009, the business was re-named Blueknight Energy Partners,L.P.

The assets of Blueknight Energy partners include a crude oil storage terminal in Cushing, Oklahoma and associated pipeline facilities, other pipeline and gathering systems in Texas, Oklahoma, and Kansas, along with 46 asphalt terminal facilities located across 23 states in the US.

http://www.vitol.com/news.php?id=53&o=0

Production at Galoc Oil Field Resumes

Business World reports that production at Galoc oil field in northwest Palawan has resumed after being suspended late last month due to a delay in the delivery of oil cargoes.

“Oil production has resumed following the temporary suspension necessary due to a delay in offloading crude oil from the FPSO (Floating, Production, Storage and Offloading) vessel,” Galoc Production said.

The Galoc oil field is estimated to contain 10 million barrels of oil, and produces between 12,000 and 14,000 barrels per day from two subsea wells.

Operator Galoc Production owns 59.84% of the Galoc service contract. Galoc Production is co-owned by European trader Vitol group, with a 68.6% stake, and Australian firm Otto Energy Ltd., with 31.4%.

Operations at Galoc were also suspended in June for bad weather.

Vitol President Mike Loya Highlighted in New Video

A new video highlights Vitol's President and CEO Mike Loya. The video showcases Vitol's capabilities and position as one of the world's largest oil traders.



http://www.youtube.com/watch?v=MhSPh6EjRag