Vitol in talks to buy equity in Shell Oil Products

Private equity firm Helios has teamed up with Vitol to put together a bid for stakes in Shell Oil Products' African businesses.

Oil trading company Vitol is currently in negotiations with Royal Dutch Shell with a view to buying equity in Shell Oil Products businesses in 19 African countries.

Shell spokesman David Williams said that under the terms of the proposed deal, the Shell brand and products would remain in each country with Vitol and private equity firm Helios Investment Partners becoming the majority shareholders in the businesses.

Vitol's interests are in downstream businesses that include retail, commercial fuels, lubricants, liquefied petroleum gas, bitumen, aviation and marine fuel in Morocco, Tunisia, Egypt, Ivory Coast, Burkina Faso, Ghana, Togo, Senegal, Kenya and Uganda, among other countries.

The potential deal, which is subject to final regulatory and company approvals, would see Vitol partner with private equity investment firm Helios and would include 1,300 retail sites, and 1.2 million cubic metres of terminal storage in total.

Vitol has grown to become major participant in the energy markets, trading more than 5.5 million barrels of crude oil and oil products a day.