Austria's OMV to sell its Turkish fuel supply unit Petrol Ofisi to Vitol for €1.37 bn

Austrian energy company OMV Group yesterday struck a deal to sell its Turkish fuel supply and distribution unit Petrol Ofisi to an investment company of Swiss-based commodities firm Vitol for €1.37 billion ($1.45 billion).

Vienna-based OMV had a year back put its Turkish subsidiary up for sale due to falling crude prices that depressed the global oil sector.

"In light of the challenging environment, I am pleased that we successfully concluded the negotiations," OMV CEO, Rainer Seele said in a statement.

OMV will record an impairment of €186 million in its fourth-quarter financial accounts, in addition to the €148 million recorded as of end-December when it reclassified the unit as held for sale.

With a 23-per cent market share and 2016 sales of around €10 billion, OMV Petrol Ofisi is the second-largest private company in Turkey.

OMV Petrol Ofisi is Turkey's leading fuel products distribution and lubricants company with 1,785 filling stations, 1 lubricants plant, 10 fuel and 3 LPG terminals, 20 aviation units and approximately 1 million cubic meters of storage capacity.

Ian Taylor, president & CEO, Vitol said, ''This is a strong business in a growing market. Its market leading brand has benefitted from OMV's focus on high standards of HSSE.  We are committed to maintaining this excellent track record and greatly look forward to working with the Petrol Ofisi team to capitalise on Turkey's strong economic performance and growing demand for energy products.''

Based in Geneva, Vitol is the world's largest independent energy trader, and ranks eighth on the Fortune Global 500 list.

The company ships more than 270 million tonnes of crude oil per year and controls 200 supertankers and other vessels. On average it handles more than 5 million barrels a day of oil and products - nearly equivalent to the daily consumption of Japan.

Vitol also  trades in coal, natural gas, power, ethanol, methanol, gasoline, LNG, LPG, naphtha, bitumen, base oils and carbon emissions.