Vitol completes acquisition of Shell's Australian downstream businessStaff writer ▼ | August 15, 2014
Viva Energy Australia was launched following the completion of Vitol's acquisition of Shell's Australian downstream business.
Viva Energy Australia New company started with work
In February 2014, Vitol announced it had reached a binding agreement with Shell to acquire its Australian downstream business (excluding Aviation) for a total consideration of A$2.9 billion ($2.6 billion).
Scott Wyatt, CEO of Viva Energy, said: "We have served customers in Australia for over 110 years and I'm delighted to be leading this business for the next phase of its development as Viva Energy Australia. We expect to invest A$1 billion over the next five years so we can continue to meet more than a quarter of Australia's fuel needs efficiently and safely. Our customers will continue to benefit from Shell's investment in R&D and the high level of service they have come to expect of us."
The completion of this transaction further increases Vitol's downstream exposure. Vitol acquired Shell's downstream assets in Africa in February 2011, creating Vivo Energy, a joint venture between Vitol (40%), Helios Investment Partners (40%) and Shell (20%). Vivo Energy operates more than 1400 retail stations across Africa under the Shell brand, and has access to 900,000 cubic metres of storage.
Meanwhile, in July 2014 Varo Energy, a joint venture between Vitol (50%) and Carlyle International Energy Partners (50%), completed the acquisition of assets including a stake in the Bayernoil refinery and certain downstream assets owned by OMV Deutschland. ■