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

Ian Taylor Expects Oil Market Surpluses

Ian Taylor, president and chief executive of independent commodities trader Vitol Group said Wednesday that Oil prices will remain capped by surpluses for several years to come.

"I cannot see oil prices significantly above where we are," Taylor told the Oil & Money conference in London.

"Oil fundamentals have got spare capacity right through the system," Taylor said. "Even with strong economic growth, Vitol does not expect oil demand growth to absorb spare capacity for a number of years."

Check out the WSJ article Vitol CEO: Expects Oil Market Surpluses In Next 5 Years

Vitol and Harvest Energy Improve Terms For Crude Oil

Vitol and Harvest Energy Trust announced that Harvest's North Atlantic Refining Limited (NARL) subsidiary has renewed and extended its existing crude oil supply and refined product offtake agreement with Vitol.

Vitol will provide to NARL comprehensive working capital financing of feedstocks and finished products as well as provide feedstock procurement and shipping, finished product marketing and shipping, price risk management, administrative and back office services.

Vitol Enters Agreement with SemGroup

Vitol entered into an agreement to purchase a 100% interest in SemGroup Energy Partners G.P., L.L.C., and 12.6 million subordinated units of SemGroup Energy Partners, L.P. (SGLP).

The assets of SGLP 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 U.S.

"We are pleased to have reached agreement for the acquisition of SemGroup Energy Partners G.P. Pending SGLP's resolution of various outstanding legal matters, this acquisition will make an important addition to our expanding business in the USA, the world's largest energy market." Mike Loya, CEO of Vitol Inc. remarked.

Vitol Teams with Eni in Ghana

Eni SpA announced yesterday that it has returned to Ghana through the acquisition of two offshore exploration blocks from Vitol.

The exploration licenses are for the Offshore Cape Three Points and Offshore Cape Three Points South.

Eni is Italy's biggest oil and natural gas company by revenue and had a presence in Ghana until the 1970s.

"We are delighted to be teaming up with Eni in Ghana at this exciting time. Eni brings world-class operating capability to the partnership, and we are strongly aligned in our view of the prospectively of our blocks and in our ambition to expedite their exploration and development, starting with our recent Sankofa discovery. Vitol has been an investor in Ghana's energy sector for more than 15 years and we recognized that teaming up with a major company with leading-edge technical know-how and operational capabilities, including in the LNG and power generation businesses, would benefit the nation. We are therefore very pleased that the Minister has approved this assignment," Chris Joly, Vitol's Upstream Manager said of the agreement with Eni.

Vitol and GNPC discover oil and gas offshore Ghana

The upstream subsidiary of Vitol and the Ghana National Petroleum Corporation (GNPC) discovered oil and gas reserves in the Sankofa-1A well offshore Ghana.

It comprised 33.1 metres of gas and 3.2 metres of oil in reservoir sands of Campanian age.

Vitol said this success confirms the prospects of the reservoir sands in the Tano/Cape Three Point basin blocks offshore western Ghana at the Jubilee field.

Check out the release and coverage by Peacefmonline.com, UPI and upstreamonline.

Mike Loya on Focus Washington

Focus Washington's Don Goldberg interviewed Vitol President and CEO Mike Loya to discuss oil prices and how they are behaving. Check out the video and the release.

Vitol to Partner with Eni

Eni, Italy's biggest energy company, agreed on a joint venture with Vitol as part of its efforts to expand its presence in sub-Saharan Africa.

"We have decided to expand our reach thanks to a joint venture with Vitol in Ghana after a large discovery of a few months ago," Eni CEO's said.

Check out this article for more information.

Galoc Resumes Operations

Galoc Production Co. (GPC), owned by The Vitol Group with a 68.6 percent interest, restarted production from the Galoc oil field early this morning. Operations were susupended in June due to bad weather.


The Galoc oil field is estimated to contain 10 million barrels of oil, and produces between 12,000 and 14,000 barrels per day. Crude oil from Galoc is expected to generate foreign exchange savings for the country worth over a billion dollars during its lifetime. The oil field’s production is 6% of the country’s total demand of 300,000 barrels.


See Business World Online and Energy Current for full coverage.

Vitol Completes Expansion Projects at Two Terminals

The Vitol Group announced today the completion of two key projects in its storage and terminals business, VTTI (Vitol Tank Terminals International).

One at the Vitco terminal, near Buenos Aires, Argentina (see photo below). According to the release, eight new tanks have been added, providing an additional 54,000 cubic metres of capacity to the existing 126,000 cubic metres of storage.











The ETA Eurotank terminal in Amsterdam, Netherlands, also added new tanks, providing an additional 150,000 cubic metres of capacity to the existing 1,250,000 cubic metres of storage.

Check out the full release

Vitol and Hillsborough

Vitol Anker International B.V. announced Monday its intention to make an offer to acquire all of the common shares of Hillsborough Resources Limited (“Hillsborough”) that it does not currently own for a cash price equal to CAD$0.45 per share.

“Our offer presents compelling value to Hillsborough’s shareholders and creates an immediate opportunity for shareholders to receive cash proceeds for their investment. Our offer price reflects our respect and enthusiasm for Hillsborough’s business,” said Jacobus Sterken, Vitol Anker’s Director.

Check out Vitol's website for the full release

Rob Nijst on VTTI

Vitol Tank Terminals International (VTTI) received great coverage in Downstreamtoday.com.

According to the article, VTTI is becoming a major player in the oil products storage industry by departing from traditional norms.

Rob Nijst, CEO of VTTI, is currently leading VTTI through a growth period, which will increase the company’s storage capacity to more than 8 million cubic meters.

“Ten years from now I see VTTI as a company that is made up of people that have the inspiration to make a difference in this industry. For me it is less important whether or not we have either 15 or 20 terminals. More important is that our customers recognize us as a different kind of company, not only being safe, reliable, flexible and efficient, but also having ‘terminals with more energy.’ And for us, it is the great team of people that we have that create this energy—but don’t lose sight of our ambition to be a top-three player in the storage and terminal business” Nijst said.

Check out downstreamtoday.com for the full article.

Hillsborough's Agreement with Vitol

Hillsborough Resources Limited finalized a revised agreement with Vitol yesterday. As part of the agreement, Hillsborough has received USD$3,032,557.78 in cash from Vitol, and approximately USD$16,000,000 of Hillsborough debt to Vitol has been cancelled. Vitol will continue to provide Hillsborough with a line of credit in the amount of CDN$6,000,000.


"We are very pleased to have finalized the revisions with Vitol, who remains a major shareholder and key strategic partner of Hillsborough Resources," stated Mr. David Slater, President and CEO. "The Vitol agreement remains a cornerstone of Hillsborough's business. In addition to the very positive contribution to the Corporation's 2009 financials, the agreement ensures a stable market for a large portion of the Quinsam mine's production over the next three years."


Check out the press release.

CVR Energy extends relationship with Vitol

Independent petroleum refiner Coffeyville Resources Refining & Marketing, LLC, a subsidiary of CVR Energy, Inc., announced that it will be extending its crude oil supply agreement with Vitol.

Vitol will now provide crude oil supply and logistics intermediation on behalf of Coffeyville Resources Refining & Marketing through Dec. 31, 2011.

Good news for Vitol. Check out the press release.

Vitol and Oil Prices

Paul Hodges also blogged about Vitol CEO Ian Taylor’s comments on the recent rise in oil prices in his Chemicals and the Economy blog.

According to ICIS news, Taylor noted that inventories are well above 5-year highs, a "huge surplus" exists in terms of days of supply and OPEC cuts "are unlikely to rebalance the market any time this year."

“In the short term, supply and demand fundamentals seem to be almost irrelevant to the flat price of oil, but as was seen in the second half of last year, they will always assert themselves over time." Taylor said.

Ian Taylor on U.S. Crude Prices

I came across this Reuters article by Jennifer Tan while reading about the Asia Oil & Gas Conference. Vitol and CEO Ian Taylor are mentioned a few times. Taylor has interesting insights on the recent jump in U.S. crude prices.

Oil execs eye crude rebound, weak distillates
By Jennifer Tan
June 8, 2009
Reuters

KUALA LUMPUR (Reuters) - Crude oil demand has begun to recover, as stockpiles are drawn down, but distillate inventories remain bloated, with traders banking on cheap freight to store excess supplies on vessels, top energy executives said on Monday. The International Energy Agency (IEA) expects OECD oil stocks to fall to 57 days by year-end from the current 63 days, if OPEC's production continues at current levels, along with the recovery in demand.

Analysts said the general rule has been that 50 days of forward cover is very bullish for oil prices, 53 days is bullish, 57 days bearish and 60 days very bearish. "This is probably a turning point (in the demand recovery) or we are very close to it," IEA's head Nobuo Tanaka told Reuters at a sidelines of the Asia Oil & Gas Conference.

Along with the rebound in demand, the contango for crude may have started to unwind, though demand for diesel is still weak, European trader Vitol said.

"We are seeing the contango narrowing on light sweet crude, not really on distillates yet. Not in the summer at least," Vitol CEO Ian Taylor told reporters on the sidelines of the conference, adding that Vitol is also storing distillates and crude on ships.

read more: http://www.reuters.com/article/businessNews/idUSTRE55809V20090610

New VTTI Web Site Launched

There is a new web site up for VTTI, http://www.vtti.com/. The web site will be a good source of information for VTTI customers.

VTTI, Vitol Tanks and Terminals International, is wholly owned by Vitol, the international energy trading group. This parentage gives VTTI a significant advantage, since the company could not be closer to the demands expressed every day by our customers.

This is also why the VTTI network has grown rapidly, both by acquisition and expansion, as it seeks to give its customers the best possible competitive advantage.

Vitol and ICECAP

Good Reuters article on Oil Trader Issues Blog.

Vitol's Mike Loya Discusses Oil Trading

This is an interesting video in which Mike Loya discusses Vitol's business in North and South America, specifically the United States. Mr. Loya has a really impressive knowledge of the industry.

"One of the key roles of Vitol in the United States is to help balance the system," said Mr. Loya. "Through implementation of the company's vast knowledge base, experience, and global reach, Vitol Inc. is able to help supply the American economy with the energy it needs to operate efficiently."



Through a diverse set of growing business models that also includes natural gas, power, coal, bio-fuels and carbon emissions, Vitol is able to meet energy needs through its various projects across the United States and around the globe. Mr. Loya talked about an example at Los Angeles International Airport. The airport consumes about 38 million barrels (1.6 billion gallons) of jet fuel per year. PFTC, a wholly owned subsidiary of Vitol Inc., supplied around 20 percent of that volume in 2008.

Mr. Loya provided insight into the fuel terminal and tank farm being constructed to serve Florida, a state without a single oil refinery. The facility, which is expected to begin operations at the beginning of next year, will operate as Seaport Canaveral LLC. It will have a vast storage capacity -- housing gasoline, diesel fuel, and jet fuel that will help to bring energy independence and new product supply to the growing population base in Florida. Mr. Loya also said that the facility would help to bring energy security to Florida during hurricane season.

Concluding the interview, Mr. Loya said that, "Vitol is on every coast around the world. With its vast reach and resources, Vitol facilitates the trading of oil and oil products between buyers and sellers, bringing liquidity and competition to the global oil markets. This efficiently brings oil and its products to customers where and when they need it, and moves oil and products from surplus markets to deficit markets, such as the United States."

The video is on the channel www.focuswashington.com.

Arawak shares cease trading on London Stock Exchange

For all those covering the Arawak issue, I took this from Vitol's web site this morning. Arawak Energy Limited (“Arawak” or the “Company”) announces that following the successful offer by Rosco S.A. (“Rosco”) to acquire all of the outstanding common shares of Arawak, the Company’s shares have been delisted from trading on the London Stock Exchange effective 24 April 2009.

On 8 April 2009, Rosco announced that it held approximately 96.91% of Arawak’s total issued common share capital following its recommended and increased cash offer (the “Offer”) of C$1.00 per Arawak share at the end of January 2009. Rosco, a subsidiary of the Vitol group of companies, has declared its Offer wholly unconditional and has commenced proceedings to compulsorily acquire all the remaining outstanding shares related to the Offer. Arawak shares were delisted from trading on the Toronto Stock Exchange on 14 April 2009.

Arawak also announces that executive Directors Alastair McBain and Shahveer Kapadia and non-executive Directors James Coleman, Nicholas Clayton and Alan Duncan have stepped down from the Board. Arawak’s new Board comprises David Fransen, Roland Favre and Jacques Sterken, nominees of the Vitol group of companies.

All documentation related to the Offer can be found on www.arawakenergy.com or on www.sedar.com.

Arawak announces management, board changes

ST. HELIER, Jersey, April 7 - Following the successful offer by Rosco S.A. ("Rosco"), a subsidiary of the Vitol group of companies, to acquire all of the outstanding common shares of Arawak Energy Limited ("Arawak" or the "Company"), Arawak announces the following changes to management and to the Board of Directors:

Charles Carter has stepped down as Chief Financial Officer and has resigned as an executive Director of the Board. Mr. Carter, who was appointed Chief Financial Officer in 2004, will join the Vitol group of companies and will be based in Geneva.

Simon Blaydes, currently Deputy Chief Financial Officer based in Almaty, Kazakhstan, will assume the role of Chief Financial Officer.

Arawak also announces that executive Director Michael Volcko and non-executive Directors Malcolm Hope-Ross, Ross Douglas and Phillip de Boos-Smith have offered their resignations to the Board. These have been accepted with immediate effect. The remaining two executive Directors, Alastair McBain and Shahveer Kapadia, and three non-executive Directors, James Coleman, Nicholas Clayton and Alan Duncan, will continue as members of the Board.

James Coleman, Arawak's Chairman, commented: "Arawak is entering a new phase in its evolution and will soon transition into a private company under the Vitol group of companies. I would like to thank my fellow Directors for their support and guidance over the years and especially during the challenging business environment of 2008. I would also like to wish Charles every success in his new role."

On 24 March 2009, Rosco S.A. ("Rosco") announced that it held approximately 95.7% of Arawak's total issued common share capital following its recommended and increased cash offer (the "Offer") of C$1.00 per Arawak share at the end of January 2009. Rosco, a subsidiary of the Vitol group, has declared its Offer wholly unconditional and has commenced proceedings to compulsorily acquire all the remaining outstanding shares related to the Offer. Arawak has applied to the UK Listing Authority for the cancellation of listing of the Arawak shares on the Official List, and to the London Stock Exchange ("LSE") for the cancellation of admission to trading in Arawak shares
on the market for listed securities. Cancellation from the LSE is expected to
be effective from 24 April 2009. Arawak has also submitted an application to
the authorities for the delisting of its shares from the Toronto Stock
Exchange.


For more information visit Vitol.

Vitol Plans Diversification

Here is an interesting piece of information from Reuters on Vitol. Apparently the company will expand into natural gas, carbon emissions, ethanol and coal to operate across the changing landscape of the global energy mix

In an interview with Reuters on Tuesday, March 24, the company's chief executive Ian Taylor told Reuters, "All these parts of the energy market are linked and if you are going to be a good global energy trader then that is what you are going to have to do."

Additionally, the company plans to bid for Iraq's oil and gas fields as a member of a consortium, and is also looking at upstream opportunities in West Africa.

"These are world class fields...hopefully the situation in Iraq will improve and the international oil companies will be able to get in to help develop these oilfields," Taylor said.

Vitol intends to bid with other firms for a role to develop Iraq's reserves.

Pension funds and other institutional investors moved into commodities over the past five years and contributed to oil's bull run, which was not particularly healthy for oil markets, Taylor said.

"In some ways from a Vitol perspective, overall the oil and the energy markets are moving back to a stronger focus on the fundamentals of supply and demand ... in the longer term this is quite healthy,"
Taylor said.

Vitol’s David Fransen Discusses Oil Prices and the State of Global Commodity Trading

In an interview with Le Temps, David Fransen, managing director of Vitol SA, discussed the volatility of recent oil markets. He explained that supply and demand fundamentals determine the price of crude and that high prices adversely affect Vitol’s working capital.

In a candid interview, Fransen provided his thoughts and set the scene for the global oil market. “We are not producers looking to sell our oil at the highest price. What we sell, we have bought. A high oil price affects us because we need more working capital to finance the same trading operations. So when the price of a barrel was at $147 we had three times as much tied up in working capital, when compared to prices today.

Focusing on the economic crisis and the potential risk for traders Fransen added, “Naturally, it’s a risk, and no one can be sure some banks won't have liquidity problems. Fortunately, this collapse in banking activity has come at a time when the price of oil is low, so it has less of an effect on our activity because we need less financing and, most importantly, we enjoy excellent relationships with our banks, who value our business.”

Talking about the quantities of oil on tankers anchored at sea and whether the oil is used for speculative purposes Fransen said, “In a contango market, buyers are willing to pay more for oil delivered in a few months time than today, ” and notes, “if the market structure changes, then this oil may come to the prompt market.”

Fransen says OPEC has reduced their supplies by more than 3 million barrels per day and this has tightened the market, causing traders to release stored oil, reinforcing the point that market demand and producers supply are the real drivers of the price of oil.

Discussing the rumor that a large investment fund could be involved in the lower price of the U.S. market compared to the European market Fransen said, “No, until recently the U.S. crude market was at a discount to Europe because there was just too much oil in the U.S. The storage centre at Cushing, Oklahoma was full so the market created no incentive to import European barrels.

http://www.vitol.com/

Vitol jv update: re-commencement of production at Galoc field

GPC is pleased to confirm that production from the Galoc Field was resumed at approximately 21:30 hours Manila time this evening 25th February 2009. During the shutdown extensive work was undertaken on both re-instating the FPSO Contractor’s Mooring and Riser System (M&RS) and implementation of enhancements to ensure improved future performance and station-keeping. These enhancements include installation of a secondary mooring arrangement connected to the FPSO stern, referred to as the Hold Back Mooring System (HBMS), and substantial modifications to the primary M&RS which included the redesign of critical attachments, installation of additional buoyancy to facilitate lay-down following disconnection and revision of the associated procedures. These enhancements are the product of considerable collaborative design effort between the field Operator (GPC) and the FPSO Contractor (Rubicon Offshore International), who is responsible for the provision and operation of the FPSO and associated M&RS. This collaborative effort is ongoing with evaluation of other potential enhancements to the system. GPC is confident that the re-instatement and enhancements implemented to date will increase the station-keeping capability of the FPSO and enable safe and reliable disconnection in the event of adverse weather. Additional Notes: General InformationThe Galoc field is located in Service Contract SC14-C (Galoc Sub Block) in 290m of water approximately 65km north west of Palawan in the Republic of the Philippines. The development involved the construction of two subsea completed horizontal production wells, with extended reservoir contacts, tied back to a Floating Production Storage and Offloading (“FPSO”) facility via a short seabed pipeline and mid water riser system. Most likely oil reserves as estimated at time of commitment to the development in 2006, is approximately 10 million barrels. The reserves estimate and requirement for additional wells and facility capacity will be reassessed following an analysis of results from initial field production performance. Further information on GPC and the Galoc Field can be obtained from:GPC’s website: www.galoc.comvia email: enquiry@galoc.com or by contacting: Jax MarianoTel: +63 918 9109581

Vitol joint venture update on progress with remedial work in the Philippines

GPC (Galoc Production Company) is pleased to report progress towards re-commencement of production from the Galoc Field, offshore the Philippines; the diver re-instatement of the mooring and riser system has been completed and the umbilical plus subsea equipment integrity testing successfully concluded. Installation of the mooring system enhancement, specifically the additional mooring lines to be connected to the FPSO stern, is progressing with the first system installed and hook-up to the FPSO ongoing. Once completed, change out of the riser sections will be undertaken. At this time weather remains favourable and completion of the re-instatement activities and re-commencement of production is anticipated next week.For further information please visit www.galoc.com

Vitol to divest VHFL stake, strengthen focus on Fujairah Refinery

Vitol Group ("Vitol") announces today that it has divested its 10% stake in Vopak Horizon Fujairah Limited (VHFL), a 1.5 million cubic metre oil storage facility in Fujairah, United Arab Emirates.The stake has been acquired by VHFL's existing shareholders, which include Vopak, Horizon, the Government of Fujairah and IPG.The sale of its stake in VHFL will enable Vitol to strengthen its focus on its key strategic asset in the region, the Fujairah Refinery Company Limited (FRCL), which operates an 82,000 barrel per day refinery and a 461,000 cubic metre tank farm. FRCL has major development plans in place, which include a 564,000 cubic metre expansion of the tank farm, refurbishment of existing refining units and the installation of more processing units. The transaction also allows Vitol to exit VHFL having achieved an attractive return on its original investment.Ian Taylor, President and CEO of Vitol, commented: "Vitol has benefited significantly from its involvement in VHFL and we wish them continued business success. The sale will now allow us to focus fully on the expansion and development of the Fujairah Refinery Company and continue our work with the Government to promote the role of Fujairah in the regional and international energy markets."

Vitol Joint Venture starts production in the Philippines

Vitol today confirmed that the Galoc Field located offshore Palawan Island in the Republic of Philippines has commenced production. Output is expected to average around 17,000 bpd for the rest of 2008, once production stabilizes following flow testing. Galoc’s estimated oil reserves are approximately 10 million barrels. Assessment of the potential for further development will be undertaken over the coming months.Vitol has a 40% interest in the Galoc Service Contract through its ownership of the Galoc Production Company. Further information on Galoc can be found on www.galoc.comFor further information on Vitol, visit www.vitol.com

Vitol to Build Malaysian Storage Terminal

The Vitol Group is pleased to announce the signing of an agreement with Seaport World Wide Sdn Bhd under which Vitol will lease land to construct an oil terminal in Tanjung Bin, Malaysia.The terminal will be used for blending and storage of crude oil, petroleum and petrochemical products and will have initial capacity of 750,000 cubic metres. The project will include the construction of numerous jetties and other marine facilities, enabling the terminal to handle all tanker sizes up to the larger VLCC’s. The investment for the first phase will be at least 1 billion Malaysian Ringgit (USD 300 million.The strategic location of Tanjung Bin in relation to navigational routes, shipping anchorages and the regional pricing centre will make this an exciting addition to Vitol's portfolio of terminals.Vitol’s current portfolio includes storage assets in Latvia, The Netherlands, Russia, Argentina and Fujairah, together with projects nearing completion in Nigeria and the United States. For further information on Vitol, visit www.vitol.com

Vitol to start bunkering operations in the Middle East

Vitol has recently entered the bunkering business for the first time in the Middle East. The business will use Vitol's long term fuel oil storage and blending operations based at Fujairah in the Arabian Gulf. The company has already taken delivery of one supply vessel and further specially modified bunker supply vessels will be arriving over the coming months. The bunker supply in Fujairah is being coordinated by Chris Young, formerly with BP.