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Pound for pound the best physical oil and gas trader in the world.
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www.vitol.com
ENERG
Y2011
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ENERGY
2011
00
80
60
40
20
100
2004
2005
2006
2007
2008
2009
97.2
5
61.6
7
2010
*79.
50
72.3
9
65.1
4
54.5
2
38.2
7
tCO2e EFFICIENCY
271425
38142208
160558
1060
103785
VITOL GROUP 2009 EMISSIONS (equity basis)Tonnes CO2 e
E&P 160558
VTTI 103785
Travel 3814
Coal 2208
Offices 1060
Total 271425
0.0284 tC02e/bbl
0.0029 tC02e/m^3
n/a n/a
0.2558 tC02e/te coal
0.0093 tC02e/ft^2
SPOT CRUDE PRICESUS dollars per barrel (Dated Brent)
2004
2005
2006
2007
2008
2009
2010
TOTAL ENERGY VOLUMESmillions of metric tonnes
00
250
300
350
200
150
100
50
400
316
*394
266
229
201
200
291
2004
2005
2006
2007
2008
2009
GROUP TURNOVERbillion US dollars
00
180
160
140
120
100
80
60
40
20
200
143
2010
*195
145
116
82.4
61.9
191
BREAKDOWN OF GROUP TURNOVER 2010billion US dollars
Crude Oil 74.8
Gasoline & Naphtha 37.2
Gas Oil & Jet 29.2
Fuel Oil 14.9
Natural Gas 13.8
LPG 4.3
Other trading 20.8
Total 195.0
74.8
37.229.2
14.9
13.8
4.3
20.8
195
*As at 10 January 2011
Group performance
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GeneVa, SWITZerLanD
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amSTerDam, neTHerLanDS
maZeIKIaI, LITHuanIa
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KaracHI, paKISTan
mumBaI, InDIa
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BeIJInG, cHIna
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naIroBI, KenYa
KaLInInGraD, ruSSIa
aBuJa, nIGerIa
LaGoS, nIGerIa
Tema, GHana
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HouSTon, uSa
TuLSa, uSa
cape canaVeraL, uSa
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rIo De JaneIro, BraZIL
HamILTon, BermuDa
BuenoS aIreS, arGenTIna
VaSSILIKo, cYpruS
cape ToWn, SouTH afrIca
01ENERGY
CONTENTS
44 Introduction46 Terminals48 Case study – A major new terminal for Florida50 Refining52 Shipping
54 Introduction56 Upstream58 Case study –Marketinganewcrudeoil
60 Network Locations
Terminals, refining and shipping
UpsTream
index
02 Welcome04 A physical trader06 Global reach08 Localunderstanding10 Speed&flexibility12 Partnership14 People, systems & liquidity
ViTol
16 Introduction18 Crude Oil19 Natural Gas20 LPG21 LNG22 Case study –Pre-financingofcrudeoil24 Naphtha25 Gasoline26 Gas Oil & Jet27 Vitol Aviation28 Fuel Oil29 Coal30 Power31 Carbon32 Case study –Utilityenergysupply34 Ethanol35 Methanol36 Chemicals37 Non-Ferrous Metals38 Case study –Securingthefutureofacoalmine40 Sugar41 RiskManagement42 Case study –RiskManagement
Trading
02 VITOL 03ENERGY
The Vitol Group exists to help meet the energy needs of a rapidly changing world.
One of the world’s 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 sector’s business partners of choice.
A WARM WELCOME
Ourtradingis,firstandforemost,physical.We charter tankers and move crude oil andoilproducts.Productssuchasgasoline,dieselandheatingoil,fueloil,jetfuel, naphtha and non-ferrous metals, as well as ethanol and chemicals: all over the world,everyday.Andwepipegas,fillandoperateterminals,shipcoalandsugar.
Thebreadthandreachofourglobalnetworkgivesusaprofoundunderstandingof the intricate interdependencies of the world’senergymarkets.Ourstatusasaprivate company and non-hierarchical partnershipstructuregivesusauniqueabilitytoactswiftly,innovativelyanddecisively.
We are, by any standards, a major participantinworldenergytrading.In2010we shipped nearly 400m tonnes of crude oil and product; we had revenues of $195 bn andweoffer24-hourcoverageofworldmarkets.Wealsocouplephysicalresourceswithindepthexpertiseinriskmanagement.
Founded in 1966 with the focused aim of tradingcrudeoilandoilproducts,Vitolisstillresolutelyanindependentgroupofseparatecompanies,eachstaffedbyenergyprofessionalswithatruedepth
ofexperienceinthebusinessofoiltransportation,marketintelligence,refining,distribution,marketing,tradingandfinance.
Our shareholders are our employees, and this fosters a true spirit of partnership internally: every facet of the business and itswell-beingisoffundamentalimportancetousall.Weattracttalentedentrepreneurswhorespondtotheexcitingopportunitiesthatanindependentcompanygivesthem.We’re resourceful and adept at understandingandmanagingrisk.Wetrustourpeople,andgivethemconsiderableresponsibility.Wemakedecisionsquickly,withshortchainsofcommand.
This solid platform allows us to build long-standingpartnershipswithourcustomers, who look to and rely upon Vitolfornimblethinking,creativesolutions-andanunwaveringcommitmenttoreliability.
04 05ENERGY
Ours is primarily a physical distribution business and one that operates on a truly global scale. We identify imbalances between supply and demand and we act quickly and safely to restore the equilibrium. We move energy from where it is sourced and stored…
A PHYSICAL TRADER
Our principal responsibility is to our customers; we are able to think fast and actdecisively.Vitolisabroadlybasedgroupof complementary businesses and we havethesystems,peopleandflexibilitytomakeintelligentconnections,optimiseeconomiesofscaleandcreateexternalpartnershipseverybitasenduringandopenastheirinternalcounterparts.
We are not speculators on absolute price movements.Nordoweexposeourselvesorourcustomerstounnecessaryrisks.Rather, we use our worldwide reach, localunderstandingandexperiencetoanticipatechange,marshalresourcesanddeliverinnovative,effectiveandreliablelogisticssolutions.
WhenmassiveMediterraneanswellscausedAlgeria’sArzew-Bethiouaporttoclosedown,suppliesofLPGtoWesternEuropewerethreatened.OurabilitytotakeontoughphysicaltradingchallengesmeantthatwewereabletosupplyaregionextendingfromsouthernFrancetoeasternPolandbytransportingLPGinrailcarsovertheAlps.
...to where it is needed
134m Tonnes of CrUde oil sales in 2010 VersUs 110m Tonnes in 2009
5m+ oVer 5m Barrels of CrUde oil and prodUCTs Traded eVerY daY BY ViTol
VITOL
06 07
Vitol’s global reach means we have a presence and local expertise wherever in the world energy is sourced, stored, transported, traded or needed. The size and diversity of our complementary worldwide interests means that we truly understand the markets in which we operate…
GLOBAL REACH
Asoneoftheworld’slargestoilandgastraders, we understand the nature of the relationshipbetweenenergydemand andfuelsupply.Ourinformationsystemsenable us to see opportunities across oceansandgeo-politicalboundaries, andwehavetheshippingandstorageresourcestorapidlyadapttochangingcircumstances and consistently try to maketherighttradesattherighttime.
6 regional CenTres
21 addiTional offiCes WorldWide
3,150 emploYees in Trading & UpsTream, VTTi and araWaK WiThin The ViTol groUp
There’smoretorunninganinternationalnetworkthansimplyhavingofficesaroundtheworld.Weforgepartnershipswithlocalbusinesses and hire the best people to help usworkwith,notagainst,theprevailingbusinessculture.Indeed,weareoftentoldby customers that we’ve won a contract becausewe’veclearlytriedhardertogainanunderstandingofhowlocalpractices,regulationsandculturaldifferencescharacterisetheirlocalmarkets.
There’smoretoglobalreachthanhavingapresenceallovertheworld.Globalreachistheabilitytoseethebiggerpicture,gainlocalinsightsandanticipatehowchangesindemandinonepartoftheworldwillaffectsupplytoanother.
A particularly cold winter in Asia means that demand for kerosene – jet fuel – escalates as people turn to itfordomesticheating.Becauseweknowwhen,whereandhowthishappens,we’reabletosource,trade and deliver alternative supplies of jet fuel for the US and European markets which otherwise would have beensuppliedfromAsia.
...and we understand the relationships between them
ENERGYVITOL
08
We pride ourselves on our commitment to embracing the nuances, dynamics and unique sensitivities of local markets. Vitol is a partnership, and one that looks to form external partnerships based on fair and mutually agreed objectives wherever in the world we are doing business. We listen…
LOCAL UNDERSTANDING
250 CarBon proJeCTs WorldWide
We employ the best local people and usetheirexpertiseandexperiencetoensurethatwhereverwearedoingbusiness, we are sensitive and alert to the cultural, economic, political and environmental concerns of the community.Thereisnoimpositionof‘onesizefitsall’solutionsdreamedup inadistantHeadOffice.Rather,weformpartnerships born of common interest andlongtermsustainability.
VITOL 09
Ghana’soffshorefishermentoldusthatourseismicsurveyingshipwasaproblemforthem,particularlyatnight,whentheirsmallwoodenboatswereeffectivelyundetectablebyVitol’sseismicvessel.Wecommissionedlocalpeopletohelpusmakesimplemetalradarreflectorsforthefishingboatssothattheycouldbeseenandavoidedatalltimes,lettingthemcarryonwiththeirbusiness,whilewecarriedonwithours.
...and we learn
ENERGY
10 11
Energy markets are volatile. They change with the political climate, with shifts in supply and demand, and with currency fluctuations. They change with the weather, with elections, with technological breakthroughs and with economic breakdowns. We anticipate…
SPEED & FLEXIBILITY
Ourstrengthliesinbeingabletoanticipateandreacttochangefasterandmoreeffectivelythanourcompetitors.Itisastrengththatgivesusthetimeandspacetoinnovate, to think laterally and to make the most of the opportunities presented to us by a unique, comprehensive and balanced portfolioofenergysectorinterests.
5,291 ship VoYages in 2010
200+ ships on The sea aT anY one Time
WithexistingshippingunabletoconveytherequiredtonnagethroughtheinlandwaterwaysoftheAmazonriver,wespoketoshipownersandmarinearchitectsandcommissionedvesselsofwiderbeamandshallowerdraft.
...and we act fast
ENERGYVITOL
...we mean partners
12
Vitol is a very different kind of business. It is a privately owned company and one in which the focus is always, without exception, on our customers. And when we say customers…
PARTNERSHIP
This is a confederation of entrepreneurs inwhicheveryoneworkstogetherforthe greatergoodofboththebusinessandourcustomers.
Thepartnershipmodelisnotconfined toinward-facingexpressions.Farfromit.Our customers are partners, too, and our relationships with them are born of equality, mutual respect and the desire tobuildandsustainlastingvaluefor bothparties.
Our partnership model is at the heart ofthewaywedobusinessandgivesus averyrealadvantageascomparedwithcompetitors who are required to consider theneedsofexternalshareholdersaswellascustomers.
Vitolisownedbyitsemployees.Thatmeans that every business decision hasthepotentialtoaffect–positively ornegatively–everyemployee.Vitolpeoplehaveaveryrealinterestinseeingsuccessacrosseverypartofthebusiness.
330aCTiVe emploYee shareholders
VITOL ENERGY 13
Attheendof2003,Iraqwasonthebrinkofamajorhumanitariancrisis.Bombedrefineriesandwreckedinfrastructuremeantthatthecountryhadeffectivelyrunoutofgasoline.Vitol’spartnershipswithcustomersonthegroundallowedustoactquickly.Weshippedgasolinetotheonlyavailableport–amilitarycontainerdockinUmmQasr–andoffloadedintofleetsofspeciallyadaptedtrucks.WealsoprovidedtheIraqiOilMinistrywithanextendedlineofcreditandsohelpedavertapotentialdisaster.
14
Vitol’s unique combination of talent, technology and resource management gives us the ability to turn ideas into reality – quickly and securely. We see opportunities…
PEOPLE, SYSTEMS & LIQUIDITY
Wehavetherightpeopleandtherightinformation.Financeisthefacilitator that allows us to complete the circle and take decisive action – even in volatile orhighpricedmarkets–secureintheknowledgethatwehavebothprovenriskmanagementtoolsandrobustliquiditymetrics.Whetherwearestructuringapre-financedealorworkingwithany ofour50ormoreworldwidebankingpartners, we are known and trusted as a businesswithfirmandcarefullymanagedfinancialfoundations.
VitolpeoplestaywithVitol.Weaimtohirethe best people in the marketplace and we make sure that they share our professional values.Wehireonmeritandexperience,not just potential, while our partnership structure fosters a culture of conservative riskmanagement.
Our people have the best information at theirfingertips,thankstoourproprietary‘Vista’system.Unequalledintheindustry,thesystem–designedbyVitolforVitol–allowsuserstoviewtheprogressofeachtransactionfromallangles,connectingeveryoneinvolvedtoa‘bigpicture’of realtimedata.
$195bnof reVenUe in 2010
44ConseCUTiVe Years of profiTaBle operaTion
VITOL
Localknowledge,experiencedtradersandfullyintegrateddatamanagementsystemsallowedustounderstandtheunderlyingreasonforabigsurgeindemandforpropaneintheBordeauxregion.Theregion’splumbrandyproducerswererushingtodrytheplumsafteraparticularlywetharvest.Ifyouknowwhydemandincreases,youknowhowandwhentomeetit.
...and we have the human, information technology and financial resources to make the most of them
15ENERGY
16 VITOL 17ENERGY
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 Group’s 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.
TRADING
We take pride in our ability to take ondifficult,complexprojectsand delivereffectivesolutionsquicklyandtransparently.Becauseourpartnershipmodel is based on collective responsibility, wearecarefultoassessriskexposureontheground,inlocalmarkets–wherewe
can see the real relationship between causeandeffect.Wedon’tmakedecisionsbasedontheoreticalmodelingormathematicalabstractions.With5,291 shipvoyagesin2010andover200 shipsatseaatanygiventime,Vitolis– byanydefinition–averyphysicaltrader.
18 VITOL 19 ENERGY
CRUDE OIL
What we doVitolisasignificantparticipantinglobalcrudeoilmarketsandcrudeoilisthelargestpartofVitol’stotalenergyportfolio.In2010wesoldaround130mtonnes of crude oil which amounts to more than 2.5mbarrelsperday.Thiscompareswithcrudeoilsalesof110mtonnesin2009.
Where we do itVitoltradescrudeoilglobally.Wehaveapresenceandonthegroundexpertisewherevercrudeisproduced, traded, stored and supplied to customers forrefining.ThismeansthatweoperateinAfrica,theMiddle East and the Far East, as well as in Russia, the Caspian,andNorthandSouthAmerica.
WehavelocalofficesincountriesaroundtheworldcoveringeverywherefromBuenosAirestoBeijing,andLuandatoLatvia.Havingapresenceonthegroundiskeytoourapproachtogettingfirsthandinformationasithappensandsharingthatinformation,quicklyandefficiently.
how we do itWebelievethatweofferacompetitiveadvantagebecausewehavetheflexibility,speedandlogisticsexpertisethatourcustomersneedandexpect.Morethan44yearsexperienceofturningmarketintelligenceintomarketadvantageaswellasourextensivelinkswithallthemajorcrudeproducersandrefinersmeansthatweareabletoworkwithexistingandnewcrudestreamsinanypartoftheworld.Thiswillhelptheproducertounderstandtherealvalueofthecrudeoil.
Wealsohelpourcustomersmanagetheirriskonmarginsandprices,allwithinanoverallcommitmenttothedevelopmentoflongtermrelationshipsthatbenefitallparties.OurlongestablishedventuresforexamplewiththestateoilcompaniesofNigeriaandOman are clear demonstrations of our commitment tolongtermrelationships.
Overall, we lift crude oil from all the key producers andselltoeveryrefiningcompanyintheworld,wherevertheyarelocated.
134mTonnes of CrUde oil sales in 2010
44 Yearsof experienCe in TUrning inTelligenCe inTo marKeT adVanTage
394mTonnes of ToTal CrUde and prodUCT sales in 2010
NATURAL GAS
What we doOurgasteamsoperateacrossthreecontinents–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: physicaltradingbasedontransportationandlogistics,storageandarbitrage.
Withover15years’experienceinthegasbusiness, Vitolhasgrownit’sphysicalsupplytomorethan 20BCMperannuminEuropealone,supportedandenabledbystoragecapacityacrossthekeycountries.We work with producers, wholesalers, distributors andindustrialsonaglobalbasis–ouruniqueindependence combined with innovative solutions has made us the partner of choice for anumberofimportantindustryparticipants.
Where we do itWedelivergastocustomersinvirtuallyeverycountryacross Europe – from Slovakia in the East to Ireland in the West, and from the North Sea to Italy and Spain intheSouth.
Across the Atlantic we source and trade Canadian gas,andfacilitatethegrowingLNGtradearound theUSGulfregion,wherewehaveinvestedheavilyinstorage.
how we do itThescaleofouroperationsandextentofourgeographicalcoverageallowustotakeanholisticviewofmarketchanges,leverageeconomiesofscale and match supply to demand wherever and whenevertheneedarises.Wehavebuiltontherelationshipsinplacewithourenergyindustrypartners, and invested in new relationships and innovativecontractualarrangementswithsuppliers,pipelineandstorageoperatorsinthegassector, withcommitmentsreachingoutnearlytwo decadesahead.
Inadditiontobeingoneofthemainliquidityprovidersattradinghubsandcrossborderpoints,oursignificantandflexibleportfoliomakesusanidealtradingpartnerfortailor-made,structuredproducts.Weareabletoofferourclientsawiderangeofbothphysicalandvirtualservices–helpingthemtoexpandacrossmarketsandborders.TheycanbenefitfromVitol’scorestrengthsinriskandportfoliomanagement,whereweareabletohelp themtomaximisetheprofitabilityoftheirportfolio witharangeofsophisticatedsolutions.
0201
01 gas drying unit at BeB’s underground gas storage site in harsefeld, near hamburg
02 Vitol has long term pipeline contracts extending up to two decades ahead
20 bcmViTol moVes 20 BCm of phYsiCal gas per Year in eUrope
30 mcmViTol’s sTorage faCiliTies in eUrope deliVer Up To 30 mCm per daY of phYsiCal gas
1.5mTonnes of lng sales in 2010
2005
2006
2007
2008
2009 (forecast)
2012 (forecast)
300 mT
200 mT
172 mT
185 mT
158 mT
140 mT
What we doVitol moved into the LNG marketplace because itisalogicalprogressionforourbusinessandhas clearsynergieswithourothertrading,shipping andstorageactivitiesaswellaswiththeinterests ofourcustomers.
Westartedbyfocusingonthepurespotmarket,cargoesnotsoldunderlongtermcontracts.Whilethisimportantsectoroftheindustryiscontinuingtogrow,itwillremainasmallproportionofthetotaltradeannually.Increasingly,Vitolismovingmoretowardslongtermcontractstosupportournaturalgasbusinessandprovidebroaderservicestoourcustomers.Wecontinuetoapplyourcoreenergytradingskillstobringopportunitiesandnewriskmanagementsolutionstothesector.BytakingLNGfromareasofsurplus,weareactivelycontributingtothegrowthinthemarket.
ToTal indUsTrY lng VolUmesWorld gas intelligence, may 2009
mT = m tonnes
20
LPG
What we doVitolisoneofthelargestinternationalLPGtraders.Wehavetheworld’slargestpressurisedvesselsand,indeed,thelargestfleet.
Atthecoreofouroperationisafleetofmorethan 40LPGtankers.Thesevessels,builtprimarilywithinthelasttenyearstoVitol’sspecifications,enableustoofferexcellentflexibilityand,importantly,speedandreliability.RefinerstendtohavelimitedLPGstorageonsite,andwithincreasinglystringentflaringregulationstheyneedtobeabletoship thegastomarketquickly.
Bycollecting,shipping,storingandtradinggasthatwouldotherwisebeflared,wearemeetingtheneedsof both the petrochemical industry and domestic users,aswellassupplyingthegrowingdemandforautogas.Wearealsomakingthebesteconomicuseof a resource that otherwise would do no more than contributetoclimatechange.
Inaddition,Vitolishighlyactiveintherefrigeratedlong-haularbitragebusiness,readytomovecargoeswhereverglobalmarketconditionsdictate.
Where we do itOurfleetshipsconsiderablevolumestocountrieswherebottledgasispopular–suchasPortugal,France, Germany, Poland, Morocco and Turkey – aswellassupplyingcargoestotheUS,China, WestAfrica,EastAfricaandtheCaribbean.
VitolalsohasaccesstoLPGstorageinEurope, aswellasWestAfrica,throughajointventure thatwillseesignificantreductionsinflaringin Nigeriabyprovidinginfrastructureforthegas tobemarketedinland.
how we do itOursizeisnotandneverhasbeenanendinitself:it is simply a consequence of our success and the strengthofourcustomerrelationships.TheVitolLPG team is truly multinational, and we use local knowledgeandinsightstoanticipatedemandandreactswiftlyandefficiently.Increasingly,weworkwithoilandgascompaniesasalogisticsandriskmanagementsolutionsprovider,andweareknownforourabilitytobringinnovativethinkingtolifethroughdecisiveaction.
21
Where we do itWehavedevelopedexistingrelationshipsandquickly established new supply partnerships in Asia, Europe,theMiddleEastandtheAmericas.Throughournetworkofregionalofficesandlocallyincountrywe are able to work with our customers on their shortandlongertermrequirements.
how we do itVitol’s independence is important to our LNG customers.Unlikemanyofthelargestoperators,we are impartial and uncompromised, with no joint venturesorupstream/downstreamobligations. Our business is based on the market fundamentals, andourcustomersgainbyourabilitytorespondwithspeedandflexibility.
01 The Charlton forms part of a 40+ LPG tanker fleet built to Vitol’s specifications within the last ten years to enable us to meet increasing demand with flexibility and speed
02 Oman LNG’s tanker, Sohar LNG, was one of Vitol’s first lng charters
40+fleeT of lpg TanKers BUilT To ViTol’s speCifiCaTions
LNG
VITOL ENERGY
01 02
22 23
PRE-FINANCING OF CRUDE OIL
CASE STUDY
Vitol was invited to participate in a pre-financing venture:• Vitolenteredintoanofftakeagreementwiththeproducer.
• Thebankagreedtoloanfundstotheproducer based on the security of theofftakeagreement.
• Atri-partiteagreementwassignedbetween the producer, the bank andVitol.
• Vitolpayspartofthevalueofeach cargodirectlytothebank,repaying theproducer’sloan.
Vitol’s presence in this three-way agreementwasthekeytoitssuccess.
When a small producer discovered a crude oil field in Kazakhstan, they wanted to release cash from future exports to assist in the development of their business.
VITOL ENERGY
24 25
GASOLINENAPHTHA
What we doEvery day, Vitol moves over 850,000 barrels of gasoline–morethantwicetheUK’sentiredailydemand.Atanygiventime,Vitolwillhavebetween50and100gasolinetankersontheworld’soceans,andisasignificantsupplierofgasolinetotheUSA.Weareexpertsinidentifyingaddedvalueandarbitrageopportunitiesandweaimtodeveloplongtermstrategicrelationships,eitherbysupplyingorbyofftakingandoftenadaptingtochanginglocalspecificationstoensuresecurityofsupply.
Where we do itWe operate, trade and participate in tenders in everyproducingcountryintheworld.WeownandleaseextensivestorageinSingapore,Fujairah(UAE), Houston, California, the Netherlands, Latvia, ArgentinaandCanada.Weservetherequirementsofrefiners,state-ownedoilcompaniesandmarketersin North and South America, Europe, the Middle East, AfricaandtheFarEast–andareworkinghardtomeetthegrowingneedsofrefineriesandethyleneplantsinChinaandIndia.Wehaveagrowingnumberof partnerships in Russia and the former Soviet states.OurmarketsareglobalandincludeCalifornia,oneofthemosthighlyregulatedgasolinemarketsintheworld.
What we doVitoltradesandmovesapproximately14mtonnesofnaphthagloballyperyear.Thevolumeboughtandsoldhasgrownsteadilyoverthelastfiveyears.We source, trade and move naphtha feedstock and clean condensate for petrochemical customers, refineriesandlargeindustrialconcerns,leveragingthelogisticsadvantagesavailabletousthroughthescaleandflexibilityofourglobalshipping,strategicstorageandarbitrageoperations.Westrivetobethe leader in both supply and delivery contracts to ensurethebestvalueforourcustomers.
Where we do itWeoperateandtradewitheveryproducingcountryintheworld.WeliftfromSaudiArabia,theEmirates,the Russian Federation, South America and North andWestAfricatonameafew.Wefacilitatetherequirementsofrefiners,state-ownedoilcompaniesand marketers in North America, Europe, Russia, the MiddleEast,AfricaandtheFarEast–andareworkinghardtomeetthegrowingneedsofrefineriesandethyleneplantsinChinaandIndia.
how we do itInanon-commoditisedmarket,wheregasolinespecificationsdifferaccordingtostateandcountryregulationsandwherechangeisincreasinglydrivenbyenvironmentalconcernsandagrowingdemandforlowsulphurproducts,marketintelligencereallymatters.Ourexperience,combinedwithourunderstandingofworldwideenergymarkets,givesusanindepth,realtimeawarenessofthespecificneedsofendusers.Ourlogisticsreachandability to act decisively wherever demand occurs means we’re able consistently to understand and meetthoseneeds.
WehaveagrowingnumberofpartnershipsinRussia–wherewehaveanexclusivenaphthaterminalinKaliningrad–andtheformerSovietstates,AsiaandNorthAfrica.
WehaveatrulyglobalpresenceandprincipalofficesinHouston,Geneva,SingaporeandLondon.Consequently,weareabletooptimiseourarbitrageactivitythrough24hourcoverageofworldmarkets.
how we do itWebringallourcoreoiltradingvalues,skillsandservices to the naphtha market: clients rely on us for ourphysicalexpertise,ourprofessionaloperationsstaffaswellasourabsolutecommitmenttodeliverproductsthatareonspecificationandontime.Ourabilitytoalwaysdeliverisareflectionofourcommitmenttobuildinglongtermrelationships,theflexibilityaffordedbyourshippingandstorageresources,ourfinancialsecurityandourcompleterangeofriskmanagementskillsandtools.
We have the skills and track record to respond to opportunities swiftly, reliably and, whenever necessary,innovatively.
02 The truck loading rack at our amsterdam Terminal has the capacity to fill between four and six trucks per hour
22.4mBarrels per daY of gasoline ConsUmed gloBallY in 2010
850,000ViTol Trades approx. 850,000 Barrels of gasoline per daY WorldWide
01
02
01 Vitol trades and operates in every naphtha producing country in the world
Barrels per daY of naphTha ConsUmed gloBallY in 2010
6.4m
VITOL ENERGY
26 27
GAS OIL & JETWhat we doVitolistheworld’sleadingtraderinmiddledistillatesandhasarealdepthandreachofexpertiseinglobalarbitragebusiness.Weareoneofthelargestusersofonshoretankstorage,with70%ofproductstoredinVitol-ownedtanks.
Vitol already supplies jet fuel to many of the world’s airlines.Wearerapidlyexpandingourbusinessinthisarea,addingvaluethroughourwealthofexperienceinhandlingphysicalproducts.
Withourstrongstoragepositionandmarketexpertiseweareoneofthekeyglobalsuppliersofgasoilandultralowsulphurdiesel(ULSD).Astheworldmovestowardsevercleanersourcesofenergy,Vitolisalsoemergingasoneofthesignificantplayersinbiodiesel,offeringafullrangeoffuelsfromB5toB100basedonsustainableoils.
Where we do itWehaveofficesinHouston,Geneva,London,Singapore,Bahrain,DubaiandMoscowandwe serve the key distillates markets in Asia, Europe, theMiddleEast,SouthAmericaandtheUS.WeareactivelyexpandingourbusinessinAfricaandChina.
OurmiddledistillatestradingissupportedbyVitol’sexpertiseandscopeofresourcesinstorage,basedinSingapore,theMiddleEast,theUSandanetworkoflocationsthroughoutEurope.
how we do itExcellentmarketintelligenceunderpinseachandeverytradewemake.Wearekeenobserversofeconomic, political and consumer trends on both macro and micro levels; we understand how cold weatherinAsiaaffectssupplytoEurope;wetry to predict, anticipate and react to international, nationalandregionalimbalanceswhereverin theworldtheyoccur.
Drawingonourglobaltrading,shippingandstorageresourcesandexpertiseintheUS,SouthAmerica, Europe and Asia, we are ideally placed to movecargoesandrealisetheopportunitiesarisingfromregionalandglobalimbalances.Ourdetailedknowledgeofspecifications–particularlyimportantinjetfuel–givesusarealadvantageinachievingbettertradingperformance.
GlobalarbitragehaslongbeenacoreVitolstrength.Today, it is a structural feature of the middle distillates marketand,assuch,Vitolisfullyqualifiedandequippedtooptimisetradingopportunities– bothnowandinthefuture.
01 Vitol supplies jet fuel to airlines throughout the world
02 Vitol’s experience and expertise in handling physical product plays an essential role in our success within this sector
01
02
VITOL AVIATIONWhat we doVitolAviationwasestablishedin2010forthespecificpurposeofprovidingbothbulkandintowingjetfuelsupplytoabroadinlandcustomerbase,sharingthebenefitsofVitol’sglobalsupplychainefficienciesandexpertise.Alongtermvalueofferingofbothphysicaljetfuel,riskmanagementandcarbonreductioninstruments.
Where we do itPTFC, now Vitol Aviation Company, has been supplyingaviationfueltotheUSWestCoastsince2007 and now supplies more than 1m tonnes peryearintoplaneatLosAngeles,SanFrancisco,Honolulu,LasVegas,SanDiegoandOntarioairports.SincethenVitolAviationhasexpandedit’sairportnetworktoincludeOrlando(MCOandSFB),Melbourne,Gainesville,JacksonvilleandDaytonaBeachintheUS,Frankfurt,Brussels,Luxembourg,Liege,StanstedandManchesterinEuropeandHongKonginAsia.Furtherplansareinplacetoexpandthisnetworktoincludeallmajorglobalhubairports.
how we do itAsoneoftheworld’slargestbulktradersofjetfuel,Vitolhasalwaysbeenamajorparticipantintradingmarkets,withsignificantsupplycontractswithallthemajorexportrefiners,includingintheMiddleEast,EuropeandtheFarEast.Underpinnedbythissecurityofsupply,wehaveanunderstandingofthedynamicsthatinfluencejetfuelpricesandlinkagewithourtradingandriskmanagementbusiness.Thisissupportedbyanunwaveringcommitmenttobecomingasignificantparticipantinthewholesaleandretailjetmarkets.Afirmbaseonwhichtobuildthisnewenterprise.
03 our storage capability extends to strategic locations in 11 countries across 5 continents. We have capacity of 6m cubic metres, and new projects that will grow the capacity to 8m cubic metres by 2013, with terminals at the worlds key trading hubs.
03
25m
ENERGYVITOL
Barrels per daY of gas oil ConsUmed gloBallY in 2010
70%of ViTol’s onshore gas oil and JeT sTored in ViTol-oWned TanKs
Over 1m Tonnes of JeT fUel sold inTo plane in Usa and oVer 1 m Tonnes of JeT fUel sold inland aT airporTs in BUlK and inTo plane in eUrope
1mTonnes of JeT fUel aVailaBle in The ara Basin and assoCiaTed sUpplY Chains, proViding seCUriTY of sUpplY and flexiBiliTY.
flexiBle gloBal sUpplY Chain generaTingBUlK effiCienCes for The end User
CANADA
COLOMBIA
SOUTH AFRICA
RUSSIA
INDONESIA
hsfo
lsfo
Vgo/lssr
FUEL OILWhat we doVitolisoneofthemostlongestablishedandactiveindependentphysicaltradersintheglobalfueloilmarket.Everymonth,weshipmorethan1mtonnesoffueloil.Approximately50%ofourfueloilbusinessisbasedontradingfeedstocks,boughtbyrefinersforfurtherupgrading.
Wehavealargeandincreasingshareofthebunkermarket,drivenbytheestablishmentofstronglongtermrelationshipswithfleetowners.Wehavealsobuiltanextensiveandexpandingnetworkofstorageterminals–bothownedandleased–inkeystrategiclocations.
Where we do itVitoltradesfueloilglobally.WehaveextensivestoragefacilitiesincludingRotterdam,FujairahandSingapore.WesourcehighsulphurfueloilfrommarketssuchasMexico,theMiddleEastand the former Soviet Union, to ship to Asia andtake low sulphur fuel oil from the USA and Europe, oftentoAsia.Feedstocksarefrequentlysourcedfrom Europe, North and West Africa and shippedtorefinersintheUSGulfCoast.
how we do itWehavetheflexibility,speedandlogisticsexpertisethatourcustomersneedandexpect.Ourlongevityand success stems from our ability to add value beyondsimplymovingphysicalproduct.Vitolisresolutelycustomerfocused,providingfueloilsolutions,stocksandriskmanagementsolutionsallovertheworld.Wealsohavetheexperienceandin-houseblendingexpertisetomeetrefiners’widelyvaryingdemandsfordifferentblendsoffeedstock.
We are able to optimise the value of a seller’s stream andtomeetandexceedthedemandsofrefinery,bunkerandvesselowners.Wesucceedbybeingconsistentlydynamic,innovativeandwell-informed.
Around 30%of The World’s fUel oil is ConsUmed BY ships
50%of oUr fUel oil is BoUghT BY refiners for fUrTher Upgrading
01
gloBal fUel oil moVemenTs
28
01 euro Tank rotterdam is equipped with jetties capable of accommodating vessels ranging between bunker barges and VlCCs. The second phase of the expansion was completed at the end of 2008 and has increased capacity to 642,000m3. phase three will be completed by the end of 2011
VITOL
COAL
02
ViTol’s gloBal mining operaTions
What we doHavingenteredthecoalmarketin2006,Vitolhasgrownrapidlytobecomeoneoftheworld’stop 5coaltraders.
In recent years, the coal market has become increasinglyliberalised,withnewgradesofcoalandpre-financinginstrumentscreatingamoresophisticated environment and one that is ideally suitedtoVitol’sexperienceandexpertise.Wecoverawiderangeofspecificoriginsforbothsteamcoaland anthracite, have a presence in every major miningregionandaresuccessfullymeetingthediverseneedsofcustomersaroundtheworld.
Aswellasinvestingsignificantlyinproductionoutput,wehavesignedlongtermcontractswithproducers in both the Far East and Europe and arenowamajortradingpresenceinsteamcoal.Similarly,wearefindinglongtermoutlets withutilities.
Anthraciteisanothersignificantstrength,with longtermcontractsinRussia,UkraineandSouthAfrica, and we support this with a full break-bulk operation(forstorage,handlingandwholesale)inGhent,Belgium.
Where we do itVitolpartners,financesandownsminesinIndonesia,Canada,SouthAfrica,ColumbiaandRussia.WesupplyacrosstheAsiaPacificregionandintoallmajorEuropeanpowerutilities.VitolisoneofthelargestsupplierstotheComisionFederaldeElectricidad,Mexico’sstatepowerutility.
how we do itOurflexibility,liquidityandriskmanagementexpertiseallowustoworkinmorechallengingenvironments, both as a producer and a buyer, and totradeinforwardmarketsuptofiveyearsahead.Wearealsoapplyingmodelsemployedinoilandnaturalgas;byfocusingonthephysicalaspects,wecanaddsignificantvalueinareassuchascoalfinanceandlogistics.
Vitol is also focused on other areas central to the sector.IndryfreightVitoladdsrealvaluetotheircoalpresencebytakinglongertermpositionsincape,panamax,andhandysizedvesselsandcomplimentthisbybeinganactiveplayerintheshippingfuturesmarket.AdditionallyVitolalsonowhasapresenceinthebiomassmarketandisinvolvedinshippingandmarketingofwoodpellets
Ourapproachispersonalandtrusted.Webuildlongterm relationships with local partners and we invest inasharedfuture.
29 ENERGY
Capesize mV xin fa hai, loading at Bayan’s newly built 60kt capacity Kalimantan floating anchorage off East Kalimantan, Indonesia
02
generaTionUniT
Coal marKeT
gas marKeT
emissionsmarKeT
fUel & CarBon emissions
& Tolling feepoWer
VITOL
POWERWhat we doWeaccesspowerstationcapacity(bysupplying fuelsinexchangeforpower)–transportpowercross-border–andoperateasapowertrader. Wealsohavetheflexibilitytoofferproductsthatmimicpowerstationdynamicsandeconomics.
Thereisanaturalsynergywithourexistingactivitiesinnaturalgas,coalandcarbonemissions,andbycombiningthesefunctionsweareabletoofferafullrangeofmulticommoditymanagementsolutionsto power plant owners and developers, utilities and largeindustrialusers,generatorsandsuppliers,newmarketentrantsandhedgefunds.
Where we do itVitolhasdevelopedphysicalandfinancialpositionsthroughoutEurope.Thisaugmentsourexistingpower activity in the US, where we are active in tradingpowerforwardsandoptionsintheeasternstates.WearealsoactiveacrosstheUK,France, GermanyandtheBeneluxcountries,withareachthatisbroadeningtoextendintoItaly,SwitzerlandandScandinavia.
how we do itTake,forexample,aninvestorinapowerplantwhowantstolockinafixedrateofreturn.Vitolmightpropose a solution whereby we take the power the plantgeneratesinexchangeforfuelsupplyandemissionscredits.Theinvestorgetsthecomfortofamarginoveradefinedterm,andisprotectedfromvolatility on power prices and the fuel needed to produceit.
Ourexperienceasanoil,gasandcoaltradergivesusarareandprofoundunderstandingoftherelationshipbetweenenergyandfuel.Weleveragethisunderstandingtogenerateefficiencies, predicttrendsanddevelopeffectivelongterm riskmanagementsolutions.
Weareindependentofanyutilityorfinancehouse,welooktobuildandsustainlongtermrelationshipswhenever possible and we have the liquidity, assets andreachtostructurebespokedeals.
01
500m TWhoUrs Traded BY ViTol in lasT 12 monThs in UK, franCe & germanY
poWer Trading
30
01 Our power offering has a natural synergy with our activities in natural gas, coal and carbon emissions. Combining these functions provides a choice of solutions to utilities.
VITOL
CARBONWhat we doIntime,thecarbonmarketcouldbethelargestcommoditymarket,surpassingevenoil†.Today,Vitolhasoneofthelargestandmostdiverse carbon project portfolios in the world and our involvementandexpertiseincarbonmarketsisglobalandcomprehensive.
Where we do itWhilstVitolhasaglobalreach,weremainverymucha hands-on, physical trader with a local presence whereitmatters.WithcarbondesksinGeneva,Singapore,Beijing,Dubai,HoustonandLondonwecovertheglobalcarbonmarketfromEuropetoUS,JapantoAustraliaandeverywhereinbetween.
how we do itVitol is one of very few participants in the market whoseinvolvementextendsallthewayfromprojectinceptiontotradingactivity–rightthroughthevaluechain.Thesizeanddiversityofourprojectsportfolioallows us to take on trades and structures that others mighthavetosyndicate.Althoughourportfolioiswiderangingweprideourselvesonbeingasmallteamenablingspeedofdecisionmaking–keyin adynamicandconstantlychangingenvironment.
Ourpartnershipsarekey–includingourownershipofcarboncreditaggregatorCRMandoursuccessfuljointventurewithICECAP,tonamebuttwo.
Ultimately,wearefocusedondeliveringvalueforourpartners, whatever their objective and our clients are asdiverseasourportfolio.Theyinclude:• Industrialcompanieslookingtomonetisetheircarbonposition.
• Utilitycompaniesseekingliquidityin themarketplace.
• Governments, for whom Vitol can facilitate the meetingofcomplianceobligations.
• Pensionandhedgefunds,lookingforatradingpartnerwithsolidexpertise.
• Projectdevelopers,lookingtomaximisetheprofitabilityoftheirprojectsthroughoursophisticatedportfolioandriskmanagementsolutions.
Vitolisconstantlylookingfornewpartnersinthecarbonmarket.Thishighlycomplexmarketpresentsmanyrisks–commercial,politicalandlegal–andVitol is ideally placed to help our partners safely navigatethesehazardswhileaddingrealandmeasurablelongtermvalue.
† Bart Chilton, CfTC Commissioner and Chairman of CfTC energy and environmental markets advisory Committee
KEY pROjECT INITIATIVES wORLDwIDE: STruCTurE: AAu/CEr/EuAforesTrYCdm/JigloBal TradingVolUnTarYUs CarBon
31 ENERGY
32 VITOL 33 ENERGY
UTILITY ENERGY SUPPLY
CASE STUDY
As markets open up, this can create many opportunities, and a state-owned electricity generator in Europe approached Vitol to explore how we could add value as a supplier of their feedstocks.
Vitol worked with the generator to:• Wintheirfueloilsupplytenderatcompetitiveprices,actingastheir‘eyesandears’aroundtheglobalmarketplace.
• Bringinourexpertiseandrecommendimprovementstoensureoptimumpricing,andpossibleprice/marginhedging.
• Reviewsupplyfacilitiesandrecommendimprovements,includingfinancingoptions.
• Proposedifferentsupplyarrangements–e.g.coal,naturalgas,LNG–aswellaspossibleCERprojects.
The utility company now has access to Vitol’sunrivalledglobalnetworkforthesourcingoffeedstocks,andbenefitsfromourexpertiseinpricehedgingandourabilitytosourcealternativeenergysupplies.
2006
2009
2015
4bn
11bn
15bn
35
ETHANOL
industry ContextThis past year also saw a historic shift in the pattern oftradeforethanol.Until2010BrazilwastheworldleaderinethanolexportsandtheUnitedStates hadbeentheworld’slargestimporteroffuel gradeethanol.
Thatsupplyanddemandrelationshipchangeddramatically in 2010 with the United States ethanol marketrespondingtogrowingethanoldemandglobally,currencyfluctuationsandahistoriclevelofsugarprices,bybecominganetexporterofethanol.Vitol,throughourglobalpresenceinthefuelsmarketsandourabilitytoutilizeoursubstantialterminalandshippingpresence,activelyparticipatedin this dramatic market shift and we continue to look foropportunitiesasthemarketscontinuetoevolve.
2011 will see the implementation of the California Low Carbon Fuel Standard (LCFS) which will place increasinglystringenttargetsforthecarbonintensity of transportation fuels used in the State of California.TheLCFSwillrequireparticipantstofindcreative solutions to supply fuel in this important marketandVitolisuniquelyqualifiedtodothis.Thecombination of the LCFS, combined with the current nationwide Renewable Fuel Standard, ensures
thatethanoltradingwillremainessentialforanycompanyexposedtotheU.S.transportationfuelmarkets.
2011andbeyondwillcontinuetobringincreasedethanol mandates from the Renewable Fuel Standard intheUS,theRenewableEnergyDirectiveinEurope,andavarietyofotherprogramsaroundtheworld.Highervolumesofbiofuelswillbeaccompaniedbymoreregulatedmarkets.EachcountryandCalifornia itself, require not only individual quality specifications,butbiofuelsfromspecificfeedstocksmeetingspecificcarbonintensityrequirements.This is an area where Vitol is able to accommodate andprovideourcustomerswiththeirspecificBioFuelneeds.
Where we do itVitolcontinuestoactivelyparticipateinthegrowingworldmarketforethanol.IntheU.S.,nowtheworldslargestethanolmarket,havingsurpassedlongtimeleader,Brazil,Vitolmaintainsanimportantpresence in the key markets of New York harbor, Chicago,Florida,Houston,SanFranciscoandLosAngeles.Vitolmaintainsethanolstorage,supplyanddistribution in all of those markets and continues to lookforopportunitiestogrowandaddvalue.
Us mandaTe for eThanol ConTriBUTion (gallons)
ENERGY34 VITOL
METHANOL
What we doMethanolisahighlyversatilecommodityandoneforwhichdemandisgrowingrapidly.Methanolderivativesfinduseinbothenergyandpetrochemicalapplications.Intheenergysectorthemarketformethanolisexpandingrapidly as methanol is used in transportation fuelsandDME(dimethylether)isusedasanLPGsubstitute,particularlyinbottledgasmarkets.Inthe petrochemical sector methanol derivatives are usedineverythingfromadhesivestopaintsandpolyestertogasoline.
In 2010, Vitol marketed over 2m tonnes of Methanolgloballyandhassimilarplansfor2011.
A major player in the methanol marketplace since 1989,Vitolisatrulyglobaltraderandmarketerofmethanolandhasthelogisticsreach,strategicstoragecapacity,arbitrageexpertiseandflexibility to both break-bulk and serve the diverse needs of endusers.
Where we do itVitol has methanol teams in Houston, Geneva, Rotterdam,London,Dubai,Singapore,andBeijing.Vitol’skeypartnershipinOmanTradingInternationalsupportsitsgrowingmethanolbusinessviaitsofftakefromtheSalalahMethanolCompany.Wealsohavelongtermsupplyandofftakerelationshipswithproducers and consumers in the US, Europe, Africa, theMiddleEastandAsia.
how we do itWefocusonbuildinglongtermrelationshipsbased on our ability to provide security of supply frommultiplesupplysources.Largetradingflows–combinedwithcomprehensivestorageinkeylocations and our status as one of the world’s largestcharterersofshipping–meanwecanmeetpracticallyanydemand,anywhere,anytime.
Wealsohavetheriskmanagementtoolsandfinancialstabilitytoputinplacepre-financingarrangementsandmanageriskregardless ofmarketconditions.
2mViTol plans To moVe 2m Tonnes of meThanol gloBallY in 2011
how we do it The second quarter of 2010 saw the startup of Vitol’sgrassrootsstorage,blending,distribution andmarketingoffinishedgasolineandbiofuelsinPortCanaveral,Florida.CanaveralisVitol’sfirst entryintotheU.S.marketforrackmarketingoftransportationfuels.Thisimportantterminallocationhashadanexcellentstartandwehaveseenarapidgrowthinoursales.
36 37
CHEMICALSWhat we doVitolisamajorandgrowingsupplierofbulkrawmaterials from Asia and the Middle East to, European andUSchemicalsconsumers.
We deal directly with petrochemical producers and consumers,receivingshipmentsintoourworldwidelogisticsfacilitiesandusingourreachandmarketknowledgeasaglobalenergytradertoidentifyandactuponarbitrageopportunities.
Our business is focused on two main products:• Benzene–usedamongotherthingsintheproductionofstyrene,phenolandcyclohexane.
• paraxylene – a main feedstock for the manufactureofpolyester.
Where we do itVitol’sChemicalsteamoperatesonaglobalbasisacross Europe, the Middle East, Asia, the Far East and theUS.WehavestrategicallysituatedstorageinRotterdam,HoustonandKorea,andwehavea longtermsupplypartnershipinplacewithTPPI(Trans-PacificPetrochemicalIndotama).
how we do itWehaveanindepthunderstandingofworldenergymarketsandcanreacttochangesinthechemicalsmarketplacequicklyanddecisively.Thisknowledgeand speed of response, combined with our ability to move physical product, means we are able to toleratepricefluctuationsandbettermanagerisk.
01 Vitol has chemicals storage facilities strategically situated in rotterdam, houston and Korea
01
VITOL ENERGY
40+ CountriesViTol sUpplies a ComprehensiVe range of meTal prodUCTs (inClUding speCialisT) To CUsTomers in oVer 40 CoUnTries WorldWide
NON-FERROUS METALSWhat we doEurominSAprovidesVitolwithtradeexpertiseinthemetalsandminingsector.
TradingthroughtheGroup’swhollyownedsubsidiary Euromin SA, we are active in base metal concentrates, ores, secondary raw materials and residues as well as primary base metals and minor metals.Wetradearoundtendifferentmetals–representingsome30products–fromoretomasteralloys,fromlowvaluetohighvalue,andfromsmallvolumestomajorcargoes.
Eurominspecialisesinzinc,fromoresthroughtorefinedproduct,withtheexpertisetotrade,distributeandmarketzincmetalthroughvariousindustrialsectors.Wedeliverzincmetalandawiderangeofzincalloystothesteelmillsandgalvanizingplants.Eurominalsosuppliesmetaltothechemical,diecastingandmetallurgicalindustries.WehavedevelopedakeystrategicpartnershipwiththeLondon-listedChelyabinskZincPlant,thelargestsmelterinRussia.
Eurominisasignificantinternationaltrader,also tradingincopperoresandconcentrates,leadandsilveroresandconcentrates,highpurityindiummetalandcadmiummetal.EurominbenefitsfromtheextensivenetworkofVitolGroupofficesaround theworld.
Euromin SA is an Associate Trader Member of the LME(LondonMetalExchange)andamemberof theGalvanizersAssociation.
Where we do itOur areas of operation include Europe, North America,Russia,Kazakhstan,LatinAmerica,Mexico,Africa,theMiddleEastandChina.
how we do itVitol’sstatusasaglobalenergytradergivesEurominaccess to new markets and allows the business tobuildonsynergiesgeneratedwithintheGroup.Euromin has a broad spectrum of customers andanequallybroadoffer:thecapabilitytotakeraw materials to smelters and smelted metals to endusers–backedbythefinancialstability,riskmanagementexpertiseandglobalreachofVitol.
02
02 We have developed a strategic partnership with the london-listed Chelyabinsk zinc plant, the largest smelter in russia
38 39
SECURING THE FUTURE OF A COAL MINE
CASE STUDY
Hillsborough Resources Ltd, a coal mine in Vancouver, turned to Vitol to help them meet their supply contracts. Vitol’s global reach in the coal marketplace and ability to marshal and coordinate logistics resource has delivered real and lasting benefits for the mine.
What we did:• VitolhascontractedallofHillsborough’sexportcoalforthenexttwoyears.
• AllofHillsborough’sproductionisshippedbyVitoltoasingle,longtermbuyer– theMexicanStateutilitycompany.
• VitolhelpedHillsboroughfinancetheirongoingcommitmenttous.
VITOL ENERGY
Vitol’ssuccessinhelpingHillsboroughsecurealongtermfutureforthemine has led, ultimately, to Vitol’s acquisition ofHillsboroughinNovember2009. Asignofrealconfidence.
2.5mtonnes
1.5mtonnes
40 41ENERGY
SUGARWhat we doVitolisasignificantparticipantintheworldsugarmarket,withawealthofexperienceinthesectordatingbackto1992.Todaywetradeupto5%oftheworld’sphysicallytradedsugarinfreemarketareas,addingvaluetotradeflowsfromproducersinthe Western and Eastern hemispheres to markets inNorthAfrica,theBlackandBalticSeasandtheMiddleandFarEast.Annually,wemove1.5mtonnesandtrade2.5mtonnesofrawsugarinbulk.Wespotcharterandtimechartervesselsrangingfrom20,000to50,000tonnes.
Where we do itVitolworkswithproducersinBrazil,CentralAmerica,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 theirphysicalrequirements.
how we do itVitolisideallyplacedtodrawonourknowledgeofbothenergyandsugar,atatimewhenethanolproductionisgrowingduetothemandateduseofalternativefuels.
Weworkwithclientstohelpthemtomanageinherent risks in one of the most volatile of agriculturalcommodities.ThiscouldincludemakingsenseofamarketsuchasIndia,whichalternatesfrombeingamajorexportertoasignificantimporter,aswellashowtoaccessopportunities that continue to develop in countries suchasChina.
Weinvesttimeinbuildinglongtermrelationshipswithourcustomers,helpingwherenecessarywithfinanceinitiativesandworkingtogethertoanticipateandreacttochangingmarketconditions.
01 Vitol works with producers in Brazil, Central america, Thailand, india and south africa
01
raW sUgar ViTol TransporTs annUallY
raW sUgar ViTolTrades annUallY
VITOL
RISK MANAGEMENT SOLUTIONSWhat we doRiskisnotsomethingthatcanalwaysbeavoided.Norisitsomethingthatshouldalwaysbeavoided.Butitshouldbemanaged.AndriskiswhereVitolandourcustomersoftenfindopportunity,andourskillliesinmanagingtherisktooptimisetheopportunity.
Wecanmeetpracticallyanyriskmanagementchallengeandwehavethebreadthofexperiencetomeetthespecificneedsofdiversecustomerswithindividuallytailoredsolutions.
Where we do itOurdedicatedteammanagesriskacrosstheglobe.We have a major presence in Europe and the US and areincreasinglyactiveonnewprojectsinAsiaandAfrica.Therangeofcustomersweserveisasvariedastheprojectswecover:fromgovernments,utilitycompanies and airlines all over the world to coal producers in Indonesia, emission reduction clients inChina,powerplantsintheUK,oilproducersinKazakhstanandAfricaandrefineriesinCanada.
how we do itOurriskmanagementskillhaslongbeenacornerstoneofourbusinesssuccess.Today,thatexpertiseisavailabletoourcustomers.
02
OUR wORLDwIDE CUSTOMERS INCLUDE: oil prodUCers refiners UTiliTY Companies TransporT Companies shipping fleeTs airlines
Vitol provides effective risk management solutions to a wide variety of clients, including oil producers
02
42 43
PHYSICAL SUPPLY AND RISK MANAGEMENT FOR AN AIRLINE
CASE STUDY
Vitol provided a key airline customer with the tools it needed to maintain and improve its competitive position.
What we did:• Weagreedaglobalriskportfolioandhedgestrategytobestmeetthe airline’sneeds.
• UsingVitol’sriskmanagementandtradingteams,abestfitsolutionwasdevelopedtomanagetheirpriceexposure.
• InpartnershipwithVitolAviation’sexpandingphysicalintoplanesupplybusiness, opportunities were also developedtolinkfixedpricesolutionswith the physical supply, when this was alignedwiththeairline’sriskmanagementstrategy.
• Vitolcontinuestoworkwiththiscustomer to ensure that the risk managementsolutionremainsfitforpurposeandcompetitive.
VITOL ENERGY
• Vitolalsocontinuestoadviseandoffersolutionstohelptheairlinemanagethecomplexissuesthatarisefromchangingcarbonemissionlegislationandtheirrequirements for carbon credits, that helpmeetbothlegislativerequirementsandtheircorporatetargets.
• InEurope,VitolAviationisdevelopingacarbon neutral, physical, into plane supplyofferforthiscustomer.
As a direct result of our relationship with this airline customer, they have reduced theirexposuretooilmarketpricevolatility,improvedtheirphysicalintowingpricingand their relative competitive position, and arenowdeveloping,inpartnershipwithVitol Aviation, a Carbon Neutral position to meet their immediate and future legislativerequirements.
44 45
VTTI represents far more than simply a rapidly expanding storage resource. It is matrix of fully integrated services delivering coordinated solutions from our terminals facilities, shipping operations and refining interests. In 2010 MISC Berhad of Malaysia acquired 50% of the shares in VTTI, with the other 50% owned by the Vitol Group.
TERMINALS, REFINING AND SHIPPING
VITOL ENERGY
Wehaveapresenceinmanykeytradingcentres around the world and an investmentstrategythatwillseeusmorethandoubleourstoragecapacitywithinthenextthreeyears.TheVitolGroupownsandchartersafleetofmodernvesselswithatrulyglobalreachand we own, operate or have interests in refineriesonthreecontinents.
Tobeaworldclassplayermeansworkingtoworldclassstandards–afactreflectedinourcommitmenttothehighestsafetyand environmental standards, the constant pursuit of smarter, more efficientengineeringsolutionsandtransparentworkingrelationshipswithlocalandstateauthorities,governmentsandpressuregroups.Andthefeedbackandinteractionthatwegetfromourlargestcustomer,theVitoltradingteam, is just one of the ways by which we are constantlyseekingtoimprove.
46 VITOL 47ENERGY
What we doVTTI’smissionistoservetheworldwideenergyindustrybylinkingoilandgasflowssafely,efficientlyandprofitably.Today,VTTIisactivein11countriesaroundtheworldandoffersacombinedcapacityof around 6m m3.Thiscapacityissettoincreasetoaround 8m m3by2013.
Ourstrengthderivesfromourknowledgeandunderstandingoftheenergysector.Weknowwhatourcustomersrequireofastoragefacilitybecause of the interaction with one of our key customers, theVitoltradingteam–henceourfocusontheflexibility,loadingcapabilitiesandinfrastructureneededtomaximisetradingopportunities,leverageeconomies of scale and make swift and decisive useofmarketinsights.
Where we do itVTTIisanintegralpartofabiggerpicturethatmightsee,forexample,VitoloilfromRussiaflowthroughVitol pipelines to a Vitol ship destined for a VTTI terminalinAmsterdam.
Inbuildingaglobalnetwork,wehavepursuedapolicyofinvestinginoilandgasterminalsandassociatedpipelinesatthemajorimport/exportlocations – or trans-shipment points – around theworld.
Terminals located in:ETT, Rotterdam, The NetherlandsETA, Amsterdam, The NetherlandsATPC,Antwerp,BelgiumVNT, Ventspils, LatviaBNK,Kaliningrad,RussiaFRCL, Fujairah, United Arab EmiratesVTTPortQasim,Karachi,PakistanVitco,Zarate,ArgentinaSeaport Canaveral, Canaveral, USANavgas,Lagos,Nigeria
Projects under development:ATTTanjungBin,MalaysiaETT3, Rotterdam, The NetherlandsVTTIKenyaLtd,MombasaROTAN Pipeline, The NetherlandsVassiliko, Cyprus
how we do itOurholisticviewoftheenergysectorallowsus toaccuratelybridgethegapbetweenassetpeople,whotakealongtermview,andtraders,who havetomakeinstantdecisions.Wenevercutcorners, always look to protect our assets and the environments and communities in which they’re located, and actively seek out those customers whosebusinesssynergiesstandtodeliverthegreatestmutualcommercialbenefit.
OurVitolGroupexpertiseandexperienceencompassesupstream,trading,utilities,shippingand terminals, and so we are able to coordinate and directresources,maximiseefficiencies,shortenturnaroundtimesandreducecosts.
Aboveall,wedeliversafe,intelligent,flexiblesolutions–oftenbornoflocalknowledgeandexpertise.FromthevibrantRussianexportmarket;tothehubofEurope’soilindustry;totheentryandexitpointofthePersian Gulf; to the access point for Latin America’s growinginternalmarket–VTTIisaddinglastingandmeasurablevalue–safelyandreliably.
02 euro Tank amsterdam has a total storage capacity of 1,394,000m3, consisting of over 244 tanks
02
01
6m m3CUrrenT VTTi ComBined CapaCiTY
8m m3ComBined CapaCiTY of VTTi BY 2013
01 euro Tank amsterdam site on the Benzolweg
TERMINALS
48 49
A MAJOR NEW TERMINAL FOR FLORIDA
CASE STUDY
VTTI has commissioned and constructed the first major new terminal to be built in Florida for many years. This 450,000m3 facility, built and staffed by local employees, is driving down the cost of energy through cargo-sized deliveries of gasoline, diesel, jet, kerosene, naphtha and fuel oil, delivering economies of scale.
VTTI’s Seaport Canaveral terminal is:• Providingsecurityofsupply.• Settingnewstandardsinefficiency andHealth&Safety.
• Bringingnewsourcesofenergy, atscale,toAmericanmarkets.
• Creatingcompetition.• Supplyingfueltothecruiseship industryatCanaveral.
ENERGYVITOL
Thisexcitingnewventurewillmakeamajordifferencetothelocaleconomyandhasturned what was once an area of unused marshland into a world-class terminal that promisestobeofrealsignificancetoAmericanmarketsandconsumers.
The futureVitol continues to look for opportunities to work with crudeoilproducerstoaccessourownedrefinerysystemandwithotherrefinerstooptimisetheirinvestmentbyaccessingthebestpossiblecrudeoilandfeedstockalternatives,gettingbestvaluesonproductsandleveragingouraccesstothebestpossiblefinancialterms.
51ENERGY50 VITOL
REFININGWhat we do Vitolhasbeeninvolvedinrefiningsinceitwasestablishedin1966,boththroughdirectownershipandindirectlythroughprocessingagreements. Vitol’sgrowingrefiningpresenceisfocusedon threespecificareas:• Owned and Operated: Vitol currently owns and operatesover100kbdofrefiningassetscloselylinkedwithourtankagefacilities,inFujairah andAntwerp.
•CrudeSupplyAgreements,ProductsOfftakeandStockFinancing:WecontinuetobecloselyinvolvedwithNorthAtlanticRefiningCompany(NARL),therefineryinCanadathatVitolpurchasedin1994.Wepurchaseallofthecrudeoilrequiredbytherefinery(around115kbd),wepurchasealloftheproductsexceptthoserequiredforlocalretail,andwefinancetherefineryoperation.IntheUS,wehaveasimilarsupply/offtakearrangementwithCoffeyvilleResourcesRefiningandMarketingforabout80kbd.Ourglobalenergytradingpresence,combinedwithourstrongbalancesheet,allowustotailorspecificagreementsthatcanprovidebenefitstoallourrefiningcounterparties.
• ProcessingAgreements:TheseallowVitoltolease
Therefineryhadbeenmothballedsince2003andfollowingmaintenanceitisnowabletooperateatupto80,000barrelsperday.Thereisstilladditionallandtoexpandandfurtherinvestmentopportunitiesarebeingconsidered.Sincethepurchase,significantadditional investment has been made, with now over 1m m3ofproductstorageinplace. In January 2010, Vitol completed the acquisition oftherefiningassetsinAntwerpthatpreviouslybelongedtoPetrolpusHoldingAG.Thefacilitiesarelocated in the Port of Antwerp and are connected toanextensivepipelinenetworkandharbourinfrastructureprovidingflexibilityforhydrocarbonfeedstock,intermediatesandfinishedproducts.TheFacilitieshaveoneofthelargestbitumenprocessingplantsintheBeneluxregionwithacapacityofapproximately875,000tonnesperannumandatankstoragefacilitywithapotentialcapacityofapproximately450,000cubicmetresafteradditionalinvestment.
unusedrefiningcapacitytotryandbenefitfrompositiverefiningmargins.Ourglobalaccesstocrudeand feedstock may provide attractive crude input options, and the products produced can be made availabletoourproducttradingteams.TherefineryprofitsfromtheprocessingfeeandtheabilitytolockinarefiningmarginforthatpartofitscapacitythatisleasedtoVitol.
further detailAsmoredetailedbackgroundtoVitol’srefiningactivity,thecompany’sfirstactualownershipandoperationofarefinerycamewhenitacquiredwhatwasthenknownastheComeByChancerefineryinNewfoundlandin1994.Thiswassubsequentlyrenamed“theNorthAtlanticRefiningCompany(NARL).Owningandoperatingthisrefineryfor13yearswithanexcellentoperatingperformanceprovidedtheexperiencethatunderpinned Vitol’ssubsequentbroaderexpansionintothe refiningsector. InOctober2006HarvestEnergyacquiredNARLfromVitol.HoweveraconditionlinkedtothesalewasacontinuingcrudeoilsupplyandrefinedproductofftakeagreementbetweenHarvest
andVitolRefiningSA.VitolprovidesNARLwithcomprehensiveworkingcapital,financingoffeedstockandfinishedproducts,includingLettersofCredit,in-transitandin-storageinventoryandtradecredit.Additionally,Vitolprovidesfeedstockprocurementandshipping,finishedproductmarketingandshipping,priceriskmanagement,administrativeandbackofficeservices.
TheagreementwithHarvestalsorequiresthatVitolpurchaseandliftallrefinedproductsproducedbyNARL,exceptforcertainexcludedrefinedproductsto be marketed by NARL in the local Newfoundland market.Also,theagreementprovidesthattheownershipofsubstantiallyallfeedstockandrefinedproductinventoryattherefineryberetainedbyVitolandthatduringthetermoftheagreement,Vitol is required to provide feedstock for delivery to therefineryaswellastheobligationtopurchaseallrefinedexportproductsproducedbytherefinery. Vitol’srefineryexpansioncontinuedwiththeacquisitionofa90%stakeintheFujairahRefineryCompanyLimited(FRCL)in2007withrefiningandstorageassetsintheEmirateofFujairah(UAE),ontheIndianOcean,southoftheStraitsofHormuz.
80,000
The fUJairah refinerY is noW aBle To refine 80,000 Barrels per daY aT maximUm CapaCiTY
51ENERGY50 VITOL
REFINING
53ENERGY52 VITOL
SHIPPINGWhat we doWearephysicaltradersandwemoveenergyfrommarkets that are in surplus to markets that are in deficit,acrossbordersandoceans.Wemoveitcompetitivelyandefficiently,fullyconsciousofourresponsibilitytomanageallouroperationssafely andwithduecarefortheenvironment.
Aworldclassshippingoperationisanessentialpartofthemanagementofoursupplychain,underpinnedbythedepthofoperationalexperiencethatexistsacrosstheshippingteam.
Where we do itWehavecommercialandoperationalofficesinfiveoftheworld’smoststrategicshippinglocations:London,Singapore,Houston,GenevaandBermudagivingusaleadingstrategicandlogisticaledgeinaglobalmarketwheretimezonesblendintoone.
how we do itShippingmarketsarehighlyvolatileandnowhereare the principles of supply and demand more relevant.Throughclosecontactwithourtradinggroupsandutilizationofourownmarketintelligence,Vitolhasthebestpossibleopportunitytoanticipateworldwidefreightmovements.
WithinVitol,theshippingteamisnotonlyaserviceprovider,transportingcommoditiesinthesafest,mostefficientandcosteffectivewaypossiblebutisacompetitivebusinessinitsownright.
Commercialandoperationalcontrolofshippingallowsthetradinggroupstoprovideultimateflexibilitytotheircustomersaswellasofferingriskmanagementsolutionsforthegroups’freightexposure.
Vitol contracts vessels that are underpinned bythecorecargoflowsofthetradinggroups,however, these contracts need to be commercially viableintheirownright.Contractswillvaryinterms of structure and period from a few weeks tomanyyears.Theaimoftheshippinggroupistomaximizetheutilisationandtherebythereturns,fromtheseassetsunderourcommercialcontrol.Shippingprofitabilityismaximizedandexposureisitselfmanagedusingarangeofthirdpartyand
internalcargoes,contractsofaffreightmentandderivatives.
Theportfolioofcargoesandshippingactivityisextensiveandincludescrudeoil,oilproducts,chemicals,drycargo,suchascoalandsugar,LPGandLNG.Weareexpandingouractivitiesinthedrycargomarketwhere,aswitheveryotherVitolbusiness,marketintelligenceiskeytooursuccess.
Vitolisthelargestindependentchartererofproducttankersintheworld,shippingnearly400mtonesofcrudeoilandproductsin2010.Atanyone time there are over 200 tankers on the water performingvoyagesforVitolineitherashortterm(spotmarketcharter)orlongtermcapacity.In2010wecompletedalmost5,300voyages,comparedto5,100in2010.
Nowhere are the core skills that underpin all of Vitol’sactivitymoreprevalentthaninourshippingbusiness:acombinationofglobalreachandlocalunderstanding,leadershipandpartnership,speedandflexibilityresultsinahighlyefficientandsuccessfulbusiness.
01 m.V, fraTerniTY
5,291VoYages in 2010
01
54 55
The strategic and operational advantages that apply to the Vitol Group as a whole – speed, flexibility, local understanding – are nowhere more relevant and mutually beneficial than in our upstream operations.
UPSTREAM
The upstream business is at the core of theoilandgasindustryusingtechnical andcommercialexpertisetoexplore for, develop and produce hydrocarbon resourcesbothonshoreandoffshore andofteninchallenginglocations andconditions.
Wehavetheglobalreach,financialscaleandsynergieswithshipping,tradingandterminals to identify and act on new opportunities wherever and whenever theyoccur.Wealsohavetheswiftness ofthoughtanddecisivenessofactionto bringnewprojectstolifeinmonthsratherthanyears.
ENERGYVITOL
GHANA:
Offshore Cape Three PointsOffshore Cape Three Points South
CONGO BRAzzAVILLE:
Block xiBlock xiV
NIGERIA:
oml 113
CAMEROON:
etinde permit
pHILIppINES:
Galoc field Octon field
RUSSIA:
north iraelsotchemyu-Talyusouth sotchemyuprichalnyeast Kamenskynorth Zeleneborskledovy licence 67south Kadzherom
KAzAKHSTAN:
akzharBesboleksaigakKarataikyzalimbai Tamdykol
AzERBAIjAN:
northern BlockCentral BlockCoastal Block
AzERBAIjAN
RUSSIA
GHANA
CONGO
CAMEROON
NIGERIApHILIppINES
KAzAKHSTAN
production, development and exploration
development and exploration
asseT loCaTions WorldWide 01
56 57
What we doOurgeoscientistsandengineersworktogether with the commercial teams to identify areas and assetsconsideredhighlyprospective.Wetakemanagedriskswithmaximumdiligenceandourshort command chain enables us to react to opportunitiesassoonastheyarise.
Vitol’supstreamstrategyencompassesorganicgrowththroughexplorationinparallelwithhighlyopportunistic acquisitions of new ventures, but always with a clear focus on projects that allow us tobuildfromourcoreareas.Wecouplethiswithanactiveglobalnetwork,identifyingandrealisingthepotentialofundervaluedassetsworldwide.
We also seek out upstream assets where Vitol wouldbewellpositionedtobecomeanofftaker,securingthecommercialisationoftheresourcesandprovidingadditionalvolumestoourtradingbusiness.
Beyondthis,wemayactasafacilitatorinmultipartner transactions, our 360º capabilities enablingustofindconnections,bridgegaps anddeliverinnovativefinancialsolutionswhereotherscannot.
Where we do itOur upstream operations are split into two dedicatedteams.InsidetheFSU,Vitol’sinterestsarerepresented by our wholly owned subsidiary Arawak Energy,whichhasbuiltaportfolioof17assetsbalanced between production, development and explorationinKazakhstan,RussiaandAzerbaijan.
OutsidetheFSU,VitolE&PholdsexplorationandproducingassetsinthePhilippinesandaportfolioofdevelopmentandexplorationpropertiesinWestAfrica–Ghana,Nigeria,CameroonandCongo.
Asat31December2010,Vitolhadequityproductionof18,000barrelsofoilperday.
how we do itOurtechnicalteamsareparamounttooursuccess.Theirinterpretationandanalysisofthegeologicalandgeophysicaldatalaythefoundationsforexplorationanddevelopmentdecisions.Ourengineeringandoperationsteamsconvertthosedecisionsintoactions,employingrigorousplanningandpreciseexecutiontodrillingprogrammes,developmentschemesorongoingmanagement ofproductionandreservoirs.
We continuously assess risk whether technical or commercial,andhaveanunfailingfocusonhealth,safetyandenvironmentalissues.
Wehavetheoperational,financialandlogisticscredibility to build successful local partnerships all overtheworld,andourabilitytocementstrong,transparentrelationshipswithpeopleonthegroundmakesusavaluedlongtermpartner.
01 Drilling operations at Arawak’s Akzhar field in Kazakhstan. arawak energy is a growing e&p company operating in russia, Kazakhstan and azerbaijan
185m boeproVed plUs proBaBle reserVes
18,000Barrels of oil per daY of eQUiTY prodUCTion
VITOL ENERGY
UPSTREAM
58 59
MARKETING A NEW CRUDE OIL
CASE STUDY
Vitol was approached by a small producer in Africa. They had discovered a new crude oil field, but lacked the resources and global trading knowledge to realise the best return for their production.
Vitol worked with their equity owners to:• Carry out and analyse the results of an assaytestinanindependentlaboratory.
• Establish a value for the new crude grade,benchmarkedagainstglobalmarkercrudes.
• Runatestcargoinrefineriestoprove thelogisticsandthevalue.
• Agreealongtermcontractwiththeproducerforcrudeoilsales.
ENERGYVITOL
The results are better netbacks for the producerandVitolmanagestheon-goingmarketingofthenewgrade.
NETwORK LOCATIONS
WorldWide offiCes
eUrope
netherlandsVitol holding B.V.Vitol B.V.Vitol s.a. rotterdam Branchanker Coal Company B.V.petroned B.V.anchor insurance B.V. Vitol aviation B.V.K.P.vanderMandelelaan1303062MBRotterdamP.O.Box15463000BMRotterdamNetherlandsTel (31 10) 498 7200Fax(3110)4529545
VTTi B.V.K.P.vanderMandelelaan1303062MBRotterdamP.O.Box15463000BMRotterdamNetherlandsTel (31 10) 498 7351Fax(3110)4531663
switzerlandVitol holding sarlVitol s.a.Vitol Central asia s.a.Vitol refining S.A.euromin s.a.BoulevardduPontd’Arve28CH 1205 GenevaP.O.Box384,1211Geneva4SwitzerlandTel (41 22) 322 1111Fax(4122)7816611
anchor insurance s.a.Route des Acacias 541227Geneva-CarougeSwitzerlandTel (41 22) 300 0435Fax(4122)8276125
United KingdomVitol Broking ltd.Vitol services ltd.BelgraveHouse76BuckinghamPalaceRoadLondonSW1W9TQUnitedKingdomTel (44 20) 7973 4200Fax(4420)78248239
euromin s.a. london BranchTel (44 20) 7917 8960Fax(4420)79178961Tlx423421
latviariga representative OfficeVaļņuStreet3,RigaLV – 1050, LatviaTel (371) 6771 5975
lithuaniaMazeikiai representative OfficeDauksos34-18,LT-89128Mazeikiai,LithuaniaTel (370 443) 20440/41Fax(370443)20442
Ukraineukraine representative OfficeBogdana.Khmelnitskogostr,486thFloor,Kiev,01030UkraineTel (380) 44538 1513Fax(380)445381514
afriCa
ghanaAccra representative OfficeAfricanIndustriesBuildingValco RoadHeavy Industrial AreaPMBCommunity1Tema, GhanaTel (233 22) 21 6912Fax(23322)216913
nigeria hyson (nigeria) ltd.WestWing,3rdFloorSAPETRO TowersPlot 98, 7 Adeola Odeku StreetVictoria IslandLagos,NigeriaTel (234 1) 461 0765Fax(2341)4610768/69
hyson (nigeria) ltd.4thFloor,CeddiPlazaPlot264,TafawaBalewaWayCentralBusinessDistrictAbuja,NigeriaTel (234 9) 461 8118Fax(2349)4618119
moroccoCasablanca representative OfficeTwin Center, Tour Ouest, 16ème étageAngleBvdsZerktounietAlMassira20100 Casablanca, MoroccoTel (212 522) 958247Fax(212522)958023
Cape TownCape Town representative OfficeHudsonBuilding,1stfloor28 Hudson Street Cape Town 8001 South Africa Tel (27 21) 4010500Fax(2721)4010501
norTh ameriCa
houstonVitol inc.1100 Louisiana StreetSuite 5500Houston, TX 77002-5255United States of AmericaTel (1 713) 230 1000Fax(1713)2301111
BermudaVitol energy (Bermuda) ltd.Vitol refining S.A. Bermuda BranchCalson (Bermuda) ltd.Sutherland Place10/12BurnabyStreetHamiltonHM11,BermudaTel (441) 295 1408Fax(441)2951406
anchor insurance grouprembrandt insurance Company ltd.25 Church StreetP.O.BoxHM824HamiltonHMBX,BermudaTel (441) 295 9911Fax(441)2921702
CaliforniaVitol aviation Company 300ContinentalBlvd.#315ElSegundo,CaliforniaCA90245United States of AmericaTel (1 310) 416 9180Fax(1310)4169185
CanadaVitol B.V.BankersHallHollinsworthBuildingSuite 600, 301 8th AvenueS.W.Calgary,AlbertaT2P1C5CanadaTel (1 403) 313 9003Fax(1403)3139004
soUTh ameriCa
argentinaVitol argentina s.a.Alicia Moreau de Justo 140 1stfloorPuertoMadero,C1107AADBuenosAires,ArgentinaTel (54 11) 6325 0000Fax(5411)63250099
BrazilVitol do Brasil ltda.Vitol do Brasil maritimaVitol do Brasil distribuidora ltda.PraiadoFlamengo,154-9thFloorCJ.901,RiodeJaneiroRJ22210-906,BrazilTel (55 21) 3235 8200Fax(5521)32358209
perueuromin peru s.a.C.Lima OfficeMiguelDasso230-office702Lima, PeruTel (511 4) 213 773 / 223 407Fax(5114)217206
asia
ChinaBeijing representative OfficeRoom 912-913HuaBinInternationalBuildingNo.8YongAnDongLiJian Guo Men Wai AvenueChaoyangDistrictBeijing100022People’s Republic of ChinaTel (86 10) 8528 9033Fax(8610)85289108
indiaMumbai representative OfficeDynastyBusinessParkA–Wing,OfficeNo502AndheriKurlaRoadJ.B.Nagar,Andheri-EastMumbai 400 059, IndiaTel (91 22) 6725 5371/74Fax(9122)67255370
KazakhstanAlmaty representative Office13 Al-FarabiNurly Tau 2 “V”, 6th Floor, 601Almaty050059,KazakhstanTel (7 727) 311 1099Fax(7727)3111109
singaporeVitol asia pte ltd.Vitol singapore pte ltd.260 Orchard RoadTheHeeren#13-01Singapore238855Tel (65) 6737 9922Fax(65)67370917Tlx33473
oman Trading international ltd.Singapore representative Office260OrchardRoad#12-02/03TheHeeren,Singapore238855Tel (65) 6735 1937Tel (65) 6735 1921
middle easT
BahrainVitol Bahrain e.C.NationalBankofBahrainTower18thfloor(181),Building113Government AvenueManamaTown316,BahrainTel (973) 17 218855Fax(973)17224793
dubaiVitol dubai ltd.Level5,PrecinctBuilding2DubaiInternationalFinancialCentre(DIFC)P.O.BoxNo.506514,DubaiUnited Arab EmiratesTel (971 4) 428 1800Fax(9714)3637467
oman Trading intl.Level5,PrecinctBuilding2DubaiInternationalFinancialCentre(DIFC)P.O.BoxNo.506515,DubaiUnited Arab EmiratesTel (971 4) 428 1888Fax(9714)3637468
rUssia
Moscow representative Office12 Tverskaya StreetBuilding1,Floor5125009 Moscow, RussiaTel (7 495) 956 2739/42Fax(7495)9562741
Terminals
eUrope
netherlandseuro Tank amsterdam B.V.JanvanRiebeeckhavenweg91041ADAmsterdamHarbour no: 2134NetherlandsTel (31 20) 587 2121Fax(3120)6119768
euro Tank Terminal B.V.Moezelweg1513198 LS Europoort-RtHarbourno: 5610P.O.Box10003180AARozenburgNetherlandsTel (31 181) 240024Fax(31181)240010
BelgiumaTpC (antwerp Terminal & processing Company) Beliweg20,Haven2792030Antwerpen,BelgiumTel (32 3) 303 1600Fax(323)3031660
latviaVentspils nafta Terminal ltd.75 Talsu Street, VentspilsLV-3602, LatviaTel (37 1) 6366 4090Fax(371)63624341
Cyprus Vassiliko representative Office6KondylakiStreet,1090LefkosiaP.O.Box24676,1302LefkosiaCyprusTel (357 22) 818 884Fax(35722)873634
afriCa
KenyaVTTi Kenya ltd.Maraket HouseElgeyoMarakwet(North)RoadoffArgwingsKodhekRoadPOBox363-00606Kilimani,Nairobi,KenyaTel: (254 20) 2384232Fax:(2420)2384233
nigerianavgas ltd.23 Creek Road, ApapaLagos,NigeriaTel (234 80) 6236 8192
asia
pakistanVTT port QasimNorth Western ZoneKarachi75020,PakistanPhone (92 21) 4720 500Fax(9221)4730136
singaporeaTT Tanjung Bin sdn Bhd260 Orchard RoadTheHeeren#13-01Singapore238855Tel (65 6737) 9922Fax(656737)0917
horizon singapore Terminals (pte) ltd.11 Meranti CrescentJurongIslandBanyanLogisParkSingapore627806Tel (65) 6303 8200Fax(65)63038234
middle easT
fujairahFujairah refinery Company Ltd.P.O.Box1592,Fujairah,UAETel (9 719) 228 1188Fax(9719)2228344
rUssia
CJsC Baltiyskaya nefteprevalochnayaKompaniya (Zao “BnK”)Oil Terminal18 Sadovaya Street238520BaltiyskKaliningradRegion,RussiaTel (7 40145) 20267Fax(740145)20267
norTh ameriCa
floridaseaport Canaveral llC555 Hwy 401Cape Canaveral, FL 32920United States of AmericaTel (1 321) 783 4890Fax(1321)7834892
houston Coastal Caverns, inc.1100 Louisiana StreetSuite 5500Houston, TX 77002-5255United States of AmericaTel (1 713) 230 1000Fax(1713)2301111
oklahomaBlueknight energy partners, l.p.6120 South Yale Ave,Suite500,Tulsa,OK74136Phone: (1 918) 237 4032
soUTh ameriCa
argentinaVitco s.a.CaminoCostaBravaParque Industrial ZàrateB2800DCAZàrateBuenosAires,ArgentinaTel (54 3487) 423 382
UpsTream
norTh ameriCa
Canadahillsborough resources ltd. TheMarineBuilding,Suite1100355BurrardStreet,VancouverNC V6C 2G8Tel: (1 604) 684 9288Fax(1604)6843178
afriCa
ghanaVitol Upstream ghana ltd.21 Aviation RoadAirport Residential AreaPOBoxKIA30414Accra, GhanaTel (233 302) 78 1124/5 Fax(233302)781126
nigeriaVitol exploration nigeria ltd.10th Floor, St Nicholas HouseCatholic Mission StreetLagos,NigeriaTel (234 1) 461 0460Fax(2341)4610464
asia
singaporegaloc production Company WWl260 Orchard RoadTheHeeren#13-01Singapore238855Tel (65) 6248 5360Fax(65)62485370
United Kingdomarawak energy UK ltd.BelgraveHouse76BuckinghamPalaceRoadLondonSW1W9TQUnitedKingdomTel (44 20) 7973 4285Fax(4420)78248466
56 ENERGY60 VITOL
00
80
60
40
20
100
2004
2005
2006
2007
2008
2009
97.2
5
61.6
7
2010
*79.
50
72.3
9
65.1
4
54.5
2
38.2
7
tCO2e EFFICIENCY
271425
38142208
160558
1060
103785
VITOL GROUP 2009 EMISSIONS (equity basis)Tonnes CO2 e
E&P 160558
VTTI 103785
Travel 3814
Coal 2208
Offices 1060
Total 271425
0.0284 tC02e/bbl
0.0029 tC02e/m^3
n/a n/a
0.2558 tC02e/te coal
0.0093 tC02e/ft^2
SPOT CRUDE PRICESUS dollars per barrel (Dated Brent)
2004
2005
2006
2007
2008
2009
2010
TOTAL ENERGY VOLUMESmillions of metric tonnes
00
250
300
350
200
150
100
50
400
316
*394
266
229
201
200
291
2004
2005
2006
2007
2008
2009
GROUP TURNOVERbillion US dollars
00
180
160
140
120
100
80
60
40
20
200
143
2010
*195
145
116
82.4
61.9
191
BREAKDOWN OF GROUP TURNOVER 2010billion US dollars
Crude Oil 74.8
Gasoline & Naphtha 37.2
Gas Oil & Jet 29.2
Fuel Oil 14.9
Natural Gas 13.8
LPG 4.3
Other trading 20.8
Total 195.0
74.8
37.229.2
14.9
13.8
4.3
20.8
195
*As at 10 January 2011
Group performance
caLGarY, canaDa
VancouVer, canaDa
LonDon, unITeD KInGDom
roTTerDam, neTHerLanDS
GeneVa, SWITZerLanD
moScoW, ruSSIa
KIeV, uKraIne
caSaBLanca, morocco
amSTerDam, neTHerLanDS
maZeIKIaI, LITHuanIa
rIGa, LaTVIa
aLmaTY, KaZaKHSTan
DuBaI, uae
fuJaIraH, uae
KaracHI, paKISTan
mumBaI, InDIa
SInGapore
BeIJInG, cHIna
BaHraIn
naIroBI, KenYa
KaLInInGraD, ruSSIa
aBuJa, nIGerIa
LaGoS, nIGerIa
Tema, GHana
eL SeGunDo, uSa
HouSTon, uSa
TuLSa, uSa
cape canaVeraL, uSa
LIma, peru
rIo De JaneIro, BraZIL
HamILTon, BermuDa
BuenoS aIreS, arGenTIna
VaSSILIKo, cYpruS
cape ToWn, SouTH afrIca
