Rosneft may join Summa in Rotterdam oil terminal, VTTI quits

By: | at 02:04 AM | Ports & Terminals  

Russian investment group Summa has taken full control of a company building an oil terminal at the Dutch port of Rotterdam, Summa said on Wednesday, while sources indicate that Rosneft may join the project.

Summa bought the 25 percent stake in the planned terminal from an affiliate of trading company Vitol. The trader’s exit deals a blow to attempts to establish Rotterdam as a hub that could help establish Russia’s Urals export crude as a market benchmark.

A Summa spokesman said the company had acquired the stake in Shtandart TT BV, the operating company, from a company called VTTI. He declined to disclose financial details.

The Vedomosti daily said VTTI, a 50/50 venture between Vitol and Malaysian shipping company MISC Bhd, an arm of state oil firm Petronas, quit the project as it was not able to secure control of the joint venture with Summa.

The $1 billion project was intended to create a more readily tradeable reservoir of Urals crude. Urals is typically sold at a discount to benchmark North Sea Brent crude, a disadvantage long questioned by Russian President Vladimir Putin.

Industry sources said Russia’s top oil producer, state-controlled Rosneft, has been in talks with Summa to enter the project. A Rosneft spokesman declined to comment.

The project, expected to handle 40,000 barrels per day of crude oil and 20,000 bpd of oil products starting from 2015, has been delayed.

Complicating Russia’s oil export logistics, Summa has been in a spat with Russian oil pipeline monopoly Transneft over ports assets in Russia, including Novorossiisk on the Black Sea, industry sources say.


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