ENERGY

ENERGY

2011

Group Performance

TOTAL ENERGY VOLUMES

millions of metric tonnes

400
*394

GROUP TURNOVER
billion US dollars

200
191 *195

BREAKDOWN OF GROUP TURNOVER 2010

billion US dollars

SPOT CRUDE PRICES

US dollars per barrel (Dated Brent)

100

VITOL GROUP 2009 EMISSIONS (equity basis)

Tonnes CO2 e

97.25

350 300
145

180 160

3814 2208

80
20.8 72.39 *79.50

103785

316

291

140
143

4.3 116

229

200

201

54.52

200
82.4

100 80 60 40 20 00

13.8

61.67

195

74.8

65.14

266

250

120

60

271425
160558 1060

150
61.9

14.9 29.2 37.2 38.27

40

100 50 00

20
Crude Oil Gasoline & Naphtha Gas Oil & Jet Fuel Oil Natural Gas LPG Other trading 74.8 37.2 29.2 tCO2e EFFICIENCY 0.0284 0.0029 n/a 0.2558 0.0093 tC02e/bbl tC02e/m^3 n/a tC02e/te coal tC02e/ft^2

00
2004 2005 2006 2007 2008 2009 2010

E&P VTTI Travel Coal Oces Total

160558 103785 3814 2208 1060 271425

2004

2005

2006

2007

2008

2009

2004

2005

2006

2007

2008

2009

2010

2010

14.9 13.8 4.3 20.8 195.0

*As at 10 January 2011

Total

ENERGY 01

CONTENTS
Vitol 02 04 06 08 10 12 14 Welcome A physical trader Global reach Local understanding Speed & flexibility Partnership People, systems & liquidity Trading 16 Introduction 18 Crude Oil 19 Natural Gas 20 LPG 21 LNG 22 Case study Pre-financing of crude oil 24 Naphtha 25 Gasoline 26 Gas Oil & Jet 27 Vitol Aviation 28 Fuel Oil 29 Coal 30 Power 31 Carbon 32 Case study Utility energy supply 34 Ethanol 35 Methanol 36 Chemicals 37 Non-Ferrous Metals 38 Case study Securing the future of a coal mine 40 Sugar 41 Risk Management 42 Case study Risk Management Terminals, Refining and Shipping 44 46 48 50 52 Introduction Terminals Case study A major new terminal for Florida Refining Shipping

UPSTREAM 54 56 58 Introduction Upstream Case study Marketing a new crude oil

Index 60 Network Locations

02 vitol

ENERGY 03

A WARM WELCOME
The Vitol Group exists to help meet the energy needs of a rapidly changing world. One of the worlds 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 sectors business partners of choice.
Our trading is, first and foremost, physical. We charter tankers and move crude oil and oil products. Products such as gasoline, diesel and heating oil, fuel oil, jet fuel, naphtha and non-ferrous metals, as well as ethanol and chemicals: all over the world, every day. And we pipe gas, fill and operate terminals, ship coal and sugar. The breadth and reach of our global network gives us a profound understanding of the intricate interdependencies of the worlds energy markets. Our status as a private company and non-hierarchical partnership structure gives us a unique ability to act swiftly, innovatively and decisively. We are, by any standards, a major participant in world energy trading. In 2010 we shipped nearly 400m tonnes of crude oil and product; we had revenues of $195 bn and we offer 24-hour coverage of world markets. We also couple physical resources with in depth expertise in risk management. Founded in 1966 with the focused aim of trading crude oil and oil products, Vitol is still resolutely an independent group of separate companies, each staffed by energy professionals with a true depth of experience in the business of oil transportation, market intelligence, refining, distribution, marketing, trading and finance. Our shareholders are our employees, and this fosters a true spirit of partnership internally: every facet of the business and its well-being is of fundamental importance to us all. We attract talented entrepreneurs who respond to the exciting opportunities that an independent company gives them. Were resourceful and adept at understanding and managing risk. We trust our people, and give them considerable responsibility. We make decisions quickly, with short chains of command. This solid platform allows us to build long-standing partnerships with our customers, who look to and rely upon Vitol for nimble thinking, creative solutions - and an unwavering commitment to reliability.

04 VITOL

ENERGY 05

A PHYSICAL TRADER
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
We are not speculators on absolute price movements. Nor do we expose ourselves or our customers to unnecessary risks. Rather, we use our worldwide reach, local understanding and experience to anticipate change, marshal resources and deliver innovative, effective and reliable logistics solutions. Our principal responsibility is to our customers; we are able to think fast and act decisively. Vitol is a broadly based group of complementary businesses and we have the systems, people and flexibility to make intelligent connections, optimise economies of scale and create external partnerships every bit as enduring and open as their internal counterparts.

...to where it is needed

When massive Mediterranean swells caused Algerias Arzew-Bethioua port to close down, supplies of LPG to Western Europe were threatened. Our ability to take on tough physical trading challenges meant that we were able to supply a region extending from southern France to eastern Poland by transporting LPG in rail cars over the Alps.

134m 5m+

TONNES OF CRUDE OIL SALES IN 2010 VERSUS 110m TONneS IN 2009

OVER 5M BARRELS OF CRUDE OIL AND PRODUCTS TRADED EVERY DAY BY VITOL

06 VITOL

ENERGY 07

GLOBAL REACH
Vitols 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
Theres more to running an international network than simply having offices around the world. We forge partnerships with local businesses and hire the best people to help us work with, not against, the prevailing business culture. Indeed, we are often told by customers that weve won a contract because weve clearly tried harder to gain an understanding of how local practices, regulations and cultural differences characterise their local markets. As one of the worlds largest oil and gas traders, we understand the nature of the relationship between energy demand and fuel supply. Our information systems enable us to see opportunities across oceans and geo-political boundaries, and we have the shipping and storage resources to rapidly adapt to changing circumstances and consistently try to make the right trades at the right time.

REGIONAL CENTRES

...and we understand the relationships between them

Theres more to global reach than having a presence all over the world. Global reach is the ability to see the bigger picture, gain local insights and anticipate how changes in demand in one part of the world will affect supply to another. A particularly cold winter in Asia means that demand for kerosene jet fuel escalates as people turn to it for domestic heating. Because we know when, where and how this happens, were able to source, trade and deliver alternative supplies of jet fuel for the US and European markets which otherwise would have been supplied from Asia.

21

ADDITIONAL OFFICES WORLDWIDE

3,150

EMPLOYEES IN TRADING & UPSTREAM, VTTI AND ARAWAK WITHIN THE vitol GROUP

08 VITOL

ENERGY 09

LOCAL UNDERSTANDING
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
We employ the best local people and use their expertise and experience to ensure that wherever we are doing business, we are sensitive and alert to the cultural, economic, political and environmental concerns of the community. There is no imposition of one size fits all solutions dreamed up in a distant Head Office. Rather, we form partnerships born of common interest and long term sustainability.

250

CARBON PROJECTS WORLDWIDE

...and we learn
Ghanas offshore fishermen told us that our seismic surveying ship was a problem for them, particularly at night, when their small wooden boats were effectively undetectable by Vitols seismic vessel. We commissioned local people to help us make simple metal radar reflectors for the fishing boats so that they could be seen and avoided at all times, letting them carry on with their business, while we carried on with ours.

10 VITOL

ENERGY 11

SPEED & FLEXIBILITY

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
Our strength lies in being able to anticipate and react to change faster and more effectively than our competitors. It is a strength that gives us the time and space to innovate, to think laterally and to make the most of the opportunities presented to us by a unique, comprehensive and balanced portfolio of energy sector interests.

...and we act fast

With existing shipping unable to convey the required tonnage through the inland waterways of the Amazon river, we spoke to ship owners and marine architects and commissioned vessels of wider beam and shallower draft.

5,291 200+

SHIP VOYAGES IN 2010

SHIPS ON THE SEA AT ANY ONE TIME

12 VITOL

ENERGY 13

PARTNERSHIP
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
Our partnership model is at the heart of the way we do business and gives us a very real advantage as compared with competitors who are required to consider the needs of external shareholders as well as customers. Vitol is owned by its employees. That means that every business decision has the potential to affect positively or negatively every employee. Vitol people have a very real interest in seeing success across every part of the business. This is a confederation of entrepreneurs in which everyone works together for the greater good of both the business and our customers. The partnership model is not confined to inward-facing expressions. Far from it. Our customers are partners, too, and our relationships with them are born of equality, mutual respect and the desire to build and sustain lasting value for both parties.

330

ACTIVE EMPLOYEE SHAREHOLDERS

...we mean partners

At the end of 2003, Iraq was on the brink of a major humanitarian crisis. Bombed refineries and wrecked infrastructure meant that the country had effectively run out of gasoline. Vitols partnerships with customers on the ground allowed us to act quickly. We shipped gasoline to the only available port a military container dock in Umm Qasr and off loaded into fleets of specially adapted trucks. We also provided the Iraqi Oil Ministry with an extended line of credit and so helped avert a potential disaster.

14 VITOL

ENERGY 15

PEOPLE, SYSTEMS & LIQUIDITY

Vitols unique combination of talent, technology and resource management gives us the ability to turn ideas into reality quickly and securely. We see opportunities
Vitol people stay with Vitol. We aim to hire the best people in the marketplace and we make sure that they share our professional values. We hire on merit and experience, not just potential, while our partnership structure fosters a culture of conservative risk management. Our people have the best information at their fingertips, thanks to our proprietary Vista system. Unequalled in the industry, the system designed by Vitol for Vitol allows users to view the progress of each transaction from all angles, connecting everyone involved to a big picture of real time data. We have the right people and the right information. Finance is the facilitator that allows us to complete the circle and take decisive action even in volatile or high priced markets secure in the knowledge that we have both proven risk management tools and robust liquidity metrics. Whether we are structuring a pre-finance deal or working with any of our 50 or more worldwide banking partners, we are known and trusted as a business with firm and carefully managed financial foundations.

...and we have the human, information technology and financial resources to make the most of them
Local knowledge, experienced traders and fully integrated data management systems allowed us to understand the underlying reason for a big surge in demand for propane in the Bordeaux region. The regions plum brandy producers were rushing to dry the plums after a particularly wet harvest. If you know why demand increases, you know how and when to meet it.

$195bn
of REVENUE IN 2010

44

CONSECUTIVE YEARS OF PROFITABLE OPERATION

16 vitol

ENERGY 17

TRADING
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 Groups 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.
We take pride in our ability to take on difficult, complex projects and deliver effective solutions quickly and transparently. Because our partnership model is based on collective responsibility, we are careful to assess risk exposure on the ground, in local markets where we can see the real relationship between cause and effect. We dont make decisions based on theoretical modeling or mathematical abstractions. With 5,291 ship voyages in 2010 and over 200 ships at sea at any given time, Vitol is by any definition a very physical trader.

18 VITOL

ENERGY 19
01 Gas drying unit at BEBs underground gas storage site in Harsefeld, near Hamburg 02 Vitol has long term pipeline contracts extending up to two decades ahead

CRUDE OIL

NATURAL GAS
01 02

What we do Vitol is a significant participant in global crude oil markets and crude oil is the largest part of Vitols total energy portfolio. In 2010 we sold around 130m tonnes of crude oil which amounts to more than 2.5m barrels per day. This compares with crude oil sales of 110m tonnes in 2009. Where we do it Vitol trades crude oil globally. We have a presence and on the ground expertise wherever crude is produced, traded, stored and supplied to customers for refining. This means that we operate in Africa, the Middle East and the Far East, as well as in Russia, the Caspian, and North and South America. We have local offices in countries around the world covering everywhere from Buenos Aires to Beijing, and Luanda to Latvia. Having a presence on the ground is key to our approach to getting first hand information as it happens and sharing that information, quickly and efficiently.

How we do it We believe that we offer a competitive advantage because we have the flexibility, speed and logistics expertise that our customers need and expect. More than 44 years experience of turning market intelligence into market advantage as well as our extensive links with all the major crude producers and refiners means that we are able to work with existing and new crude streams in any part of the world. This will help the producer to understand the real value of the crude oil. We also help our customers manage their risk on margins and prices, all within an overall commitment to the development of long term relationships that benefit all parties. Our long established ventures for example with the state oil companies of Nigeria and Oman are clear demonstrations of our commitment to long term relationships. Overall, we lift crude oil from all the key producers and sell to every refining company in the world, wherever they are located.

134m

tonnes of crude OIL SALES in 2010

44 Years 394m

What we do Our gas teams operate across three continents 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: physical trading based on transportation and logistics, storage and arbitrage. With over 15 years experience in the gas business, Vitol has grown its physical supply to more than 20 BCM per annum in Europe alone, supported and enabled by storage capacity across the key countries. We work with producers, wholesalers, distributors and industrials on a global basis our unique independence combined with innovative solutions has made us the partner of choice for a number of important industry participants. Where we do it We deliver gas to customers in virtually every country across Europe from Slovakia in the East to Ireland in the West, and from the North Sea to Italy and Spain in the South. Across the Atlantic we source and trade Canadian gas, and facilitate the growing LNG trade around the US Gulf region, where we have invested heavily in storage.

of experience in turning intelligence into market advantage

How we do it The scale of our operations and extent of our geographical coverage allow us to take an holistic view of market changes, leverage economies of scale and match supply to demand wherever and whenever the need arises. We have built on the relationships in place with our energy industry partners, and invested in new relationships and innovative contractual arrangements with suppliers, pipeline and storage operators in the gas sector, with commitments reaching out nearly two decades ahead. In addition to being one of the main liquidity providers at trading hubs and cross border points, our significant and flexible portfolio makes us an ideal trading partner for tailor-made, structured products. We are able to offer our clients a wide range of both physical and virtual services helping them to expand across markets and borders. They can benefit from Vitols core strengths in risk and portfolio management, where we are able to help them to maximise the profitability of their portfolio with a range of sophisticated solutions.

20 bcm

Vitol moves 20 BCM of physical gas per year in europe

Vitols storage facilities in Europe deliver up to 30 mCm per day of physical gas

30 mcm 1.5m

tonnes of total crude and product sales in 2010

TONNES OF LNG SALES IN 2010

20 VITOL
01 The Charlton forms part of a 40+ LPG tanker fleet built to Vitols specifications within the last ten years to enable us to meet increasing demand with flexibility and speed

ENERGY 21
02 Oman LNGs tanker, Sohar LNG, was one of Vitols first LNG charters

01

02

LPG
What we do Vitol is one of the largest international LPG traders. We have the worlds largest pressurised vessels and, indeed, the largest fleet. At the core of our operation is a fleet of more than 40 LPG tankers. These vessels, built primarily within the last ten years to Vitols specifications, enable us to offer excellent flexibility and, importantly, speed and reliability. Refiners tend to have limited LPG storage on site, and with increasingly stringent flaring regulations they need to be able to ship the gas to market quickly. By collecting, shipping, storing and trading gas that would otherwise be flared, we are meeting the needs of both the petrochemical industry and domestic users, as well as supplying the growing demand for autogas. We are also making the best economic use of a resource that otherwise would do no more than contribute to climate change. In addition, Vitol is highly active in the refrigerated long-haul arbitrage business, ready to move cargoes wherever global market conditions dictate. Where we do it Our fleet ships considerable volumes to countries where bottled gas is popular such as Portugal, France, Germany, Poland, Morocco and Turkey as well as supplying cargoes to the US, China, West Africa, East Africa and the Caribbean. Vitol also has access to LPG storage in Europe, as well as West Africa, through a joint venture that will see significant reductions in flaring in Nigeria by providing infrastructure for the gas to be marketed inland. How we do it Our size is not and never has been an end in itself: it is simply a consequence of our success and the strength of our customer relationships. The Vitol LPG team is truly multinational, and we use local knowledge and insights to anticipate demand and react swiftly and efficiently. Increasingly, we work with oil and gas companies as a logistics and risk management solutions provider, and we are known for our ability to bring innovative thinking to life through decisive action.

LNG
40+
FLEET OF LPG TANKERS BUILT TO VITOLS SPECIFICATIONS What we do Vitol moved into the LNG marketplace because it is a logical progression for our business and has clear synergies with our other trading, shipping and storage activities as well as with the interests of our customers. We started by focusing on the pure spot market, cargoes not sold under long term contracts. While this important sector of the industry is continuing to grow, it will remain a small proportion of the total trade annually. Increasingly, Vitol is moving more towards long term contracts to support our natural gas business and provide broader services to our customers. We continue to apply our core energy trading skills to bring opportunities and new risk management solutions to the sector. By taking LNG from areas of surplus, we are actively contributing to the growth in the market. Where we do it We have developed existing relationships and quickly established new supply partnerships in Asia, Europe, the Middle East and the Americas. Through our network of regional offices and locally in country we are able to work with our customers on their short and longer term requirements. How we do it Vitols independence is important to our LNG customers. Unlike many of the largest operators, we are impartial and uncompromised, with no joint ventures or upstream/downstream obligations. Our business is based on the market fundamentals, and our customers gain by our ability to respond with speed and flexibility.
TOTAL INDUSTRY LNG volumes
World Gas Intelligence, May 2009

300 MT

MT = m tonnes

200 MT

185 MT 158 MT

172 MT

140 MT

2005 2006 2007 2008 2009 (forecast) 2012 (forecast)

22 VITOL
CASE STUDY

ENERGY 23

Pre-Financing Of Crude Oil

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 was invited to participate in a pre-financing venture:  Vitol entered into an offtake agreement with the producer.  The bank agreed to loan funds to the producer based on the security of the offtake agreement.  A tri-partite agreement was signed between the producer, the bank and Vitol.  Vitol pays part of the value of each cargo directly to the bank, repaying the producers loan. Vitols presence in this three-way agreement was the key to its success.

24 Vitol
01 Vitol trades and operates in every naphtha producing country in the world

ENERGY 25
02 The truck loading rack at our Amsterdam Terminal has the capacity to fill between four and six trucks per hour

NAPHTHA
01

GASOLINE
02

What we do Vitol trades and moves approximately 14m tonnes of naphtha globally per year. The volume bought and sold has grown steadily over the last five years. We source, trade and move naphtha feedstock and clean condensate for petrochemical customers, refineries and large industrial concerns, leveraging the logistics advantages available to us through the scale and flexibility of our global shipping, strategic storage and arbitrage operations. We strive to be the leader in both supply and delivery contracts to ensure the best value for our customers. Where we do it We operate and trade with every producing country in the world. We lift from Saudi Arabia, the Emirates, the Russian Federation, South America and North and West Africa to name a few. We facilitate the requirements of refiners, state-owned oil companies and marketers in North America, Europe, Russia, the Middle East, Africa and the Far East and are working hard to meet the growing needs of refineries and ethylene plants in China and India.

We have a growing number of partnerships in Russia where we have an exclusive naphtha terminal in Kaliningrad and the former Soviet states, Asia and North Africa. We have a truly global presence and principal offices in Houston, Geneva, Singapore and London. Consequently, we are able to optimise our arbitrage activity through 24 hour coverage of world markets. How we do it We bring all our core oil trading values, skills and services to the naphtha market: clients rely on us for our physical expertise, our professional operations staff as well as our absolute commitment to deliver products that are on specification and on time. Our ability to always deliver is a reflection of our commitment to building long term relationships, the flexibility afforded by our shipping and storage resources, our financial security and our complete range of risk management skills and tools. We have the skills and track record to respond to opportunities swiftly, reliably and, whenever necessary, innovatively.

6.4m
barrels per day of naphtha CONSUMED globally IN 2010

What we do Every day, Vitol moves over 850,000 barrels of gasoline more than twice the UKs entire daily demand. At any given time, Vitol will have between 50 and 100 gasoline tankers on the worlds oceans, and is a significant supplier of gasoline to the USA. We are experts in identifying added value and arbitrage opportunities and we aim to develop long term strategic relationships, either by supplying or by offtaking and often adapting to changing local specifications to ensure security of supply. Where we do it We operate, trade and participate in tenders in every producing country in the world. We own and lease extensive storage in Singapore, Fujairah (UAE), Houston, California, the Netherlands, Latvia, Argentina and Canada. We serve the requirements of refiners, state-owned oil companies and marketers in North and South America, Europe, the Middle East, Africa and the Far East and are working hard to meet the growing needs of refineries and ethylene plants in China and India. We have a growing number of partnerships in Russia and the former Soviet states. Our markets are global and include California, one of the most highly regulated gasoline markets in the world.

How we do it In a non-commoditised market, where gasoline specifications differ according to state and country regulations and where change is increasingly driven by environmental concerns and a growing demand for low sulphur products, market intelligence really matters. Our experience, combined with our understanding of worldwide energy markets, gives us an in depth, real time awareness of the specific needs of end users. Our logistics reach and ability to act decisively wherever demand occurs means were able consistently to understand and meet those needs.

22.4m

barrels per day of Gasoline consumed globally IN 2010

850,000

Vitol trades approx. 850,000 barrels OF GASOLINE per day worldwide

26 Vitol
01 Vitol supplies jet fuel to airlines throughout the world 02 Vitols experience and expertise in handling physical product plays an essential role in our success within this sector

ENERGY 27
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.

GAS OIL & JET

What we do Vitol is the worlds leading trader in middle distillates and has a real depth and reach of expertise in global arbitrage business. We are one of the largest users of onshore tank storage, with 70% of product stored in Vitol-owned tanks. Vitol already supplies jet fuel to many of the worlds airlines. We are rapidly expanding our business in this area, adding value through our wealth of experience in handling physical products. With our strong storage position and market expertise we are one of the key global suppliers of gas oil and ultra low sulphur diesel (ULSD). As the world moves towards ever cleaner sources of energy, Vitol is also emerging as one of the significant players in biodiesel, offering a full range of fuels from B5 to B100 based on sustainable oils. Where we do it We have offices in Houston, Geneva, London, Singapore, Bahrain, Dubai and Moscow and we serve the key distillates markets in Asia, Europe, the Middle East, South America and the US. We are actively expanding our business in Africa and China. Our middle distillates trading is supported by Vitols expertise and scope of resources in storage, based in Singapore, the Middle East, the US and a network of locations throughout Europe.
02 01

Vitol Aviation
25m
barrels per day of GAS OIL CONSUMED globally IN 2010 What we do Vitol Aviation was established in 2010 for the specific purpose of providing both bulk and into wing jet fuel supply to a broad inland customer base, sharing the benefits of Vitols global supply chain efficiencies and expertise. A long term value offering of both physical jet fuel, risk management and carbon reduction instruments. Where we do it PTFC, now Vitol Aviation Company, has been supplying aviation fuel to the US West Coast since 2007 and now supplies more than 1m tonnes per year into plane at Los Angeles, San Francisco, Honolulu, Las Vegas, San Diego and Ontario airports. Since then Vitol Aviation has expanded its airport network to include Orlando (MCO and SFB), Melbourne, Gainesville, Jacksonville and Daytona Beach in the US, Frankfurt, Brussels, Luxembourg, Liege, Stansted and Manchester in Europe and Hong Kong in Asia. Further plans are in place to expand this network to include all major global hub airports. How we do it As one of the worlds largest bulk traders of jet fuel, Vitol has always been a major participant in trading markets, with significant supply contracts with all the major export refiners, including in the Middle East, Europe and the Far East. Underpinned by this security of supply, we have an understanding of the dynamics that influence jet fuel prices and linkage with our trading and risk management business. This is supported by an unwavering commitment to becoming a significant participant in the wholesale and retail jet markets. A firm base on which to build this new enterprise.

How we do it Excellent market intelligence underpins each and every trade we make. We are keen observers of economic, political and consumer trends on both macro and micro levels; we understand how cold weather in Asia affects supply to Europe; we try to predict, anticipate and react to international, national and regional imbalances wherever in the world they occur. Drawing on our global trading, shipping and storage resources and expertise in the US, South America, Europe and Asia, we are ideally placed to move cargoes and realise the opportunities arising from regional and global imbalances. Our detailed knowledge of specifications particularly important in jet fuel gives us a real advantage in achieving better trading performance. Global arbitrage has long been a core Vitol strength. Today, it is a structural feature of the middle distillates market and, as such, Vitol is fully qualified and equipped to optimise trading opportunities both now and in the future.

Over 1m 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

70%

OF VITOLs ONSHORE gas oil and jet STORED IN VITOL-OWNED TANKS

TONNES of jet fuel AVAILABLE in the ARA basin and associated supply chains, providing security of supply and flexibility.

FLEXIBLE GLOBAL SUPPLY CHAIN GENERATING BULK EFFICIENCES FOR THE END USER

03

28 Vitol
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 02 Capesize MV Xin Fa Hai, loading at Bayans newly built 60kt capacity Kalimantan floating anchorage off East Kalimantan, Indonesia

ENERGY 29

FUEL OIL
What we do Vitol is one of the most long established and active independent physical traders in the global fuel oil market. Every month, we ship more than 1m tonnes of fuel oil. Approximately 50% of our fuel oil business is based on trading feedstocks, bought by refiners for further upgrading. We have a large and increasing share of the bunker market, driven by the establishment of strong long term relationships with fleet owners. We have also built an extensive and expanding network of storage terminals both owned and leased in key strategic locations. Where we do it Vitol trades fuel oil globally. We have extensive storage facilities including Rotterdam, Fujairah and Singapore. We source high sulphur fuel oil from markets such as Mexico, the Middle East and the former Soviet Union, to ship to Asia and take low sulphur fuel oil from the USA and Europe, often to Asia. Feedstocks are frequently sourced from Europe, North and West Africa and shipped to refiners in the US Gulf Coast. How we do it We have the flexibility, speed and logistics expertise that our customers need and expect. Our longevity and success stems from our ability to add value beyond simply moving physical product. Vitol is resolutely customer focused, providing fuel oil solutions, stocks and risk management solutions all over the world. We also have the experience and in-house blending expertise to meet refiners widely varying demands for different blends of feedstock. We are able to optimise the value of a sellers stream and to meet and exceed the demands of refinery, bunker and vessel owners. We succeed by being consistently dynamic, innovative and well-informed.
GLOBAL fuel oil movements

COAL
Around 30%
OF THE WORLDS FUEL OIL IS CONSUMED BY SHIPS What we do Having entered the coal market in 2006, Vitol has grown rapidly to become one of the worlds top 5 coal traders. In recent years, the coal market has become increasingly liberalised, with new grades of coal and pre-financing instruments creating a more sophisticated environment and one that is ideally suited to Vitols experience and expertise. We cover a wide range of specific origins for both steam coal and anthracite, have a presence in every major mining region and are successfully meeting the diverse needs of customers around the world. As well as investing significantly in production output, we have signed long term contracts with producers in both the Far East and Europe and are now a major trading presence in steam coal. Similarly, we are finding long term outlets with utilities. Anthracite is another significant strength, with long term contracts in Russia, Ukraine and South Africa, and we support this with a full break-bulk operation (for storage, handling and wholesale) in Ghent, Belgium.
HSFO LSFO VGO/LSSR Vitols GLOBAL Mining Operations
SOUTH AFRICA

50%

Where we do it Vitol partners, finances and owns mines in Indonesia, Canada, South Africa, Columbia and Russia. We supply across the Asia Pacific region and into all major European power utilities. Vitol is one of the largest suppliers to the Comision Federal de Electricidad, Mexicos state power utility. How we do it Our flexibility, liquidity and risk management expertise allow us to work in more challenging environments, both as a producer and a buyer, and to trade in forward markets up to five years ahead. We are also applying models employed in oil and natural gas; by focusing on the physical aspects, we can add significant value in areas such as coal finance and logistics.

OF OUR FUEL OIL IS BOUGHT BY REFINERS FOR FURTHER UPGRADING

Vitol is also focused on other areas central to the sector. In dry freight Vitol adds real value to their coal presence by taking longer term positions in cape, panamax, and handy sized vessels and compliment this by being an active player in the shipping futures market. Additionally Vitol also now has a presence in the biomass market and is involved in shipping and marketing of wood pellets Our approach is personal and trusted. We build long term relationships with local partners and we invest in a shared future.

CANADA

RUSSIA

COLOMBIA Indonesia

01

02

30 Vitol
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.

ENERGY 31
Bart Chilton, CFTC Commissioner and Chairman of CFTC Energy and Environmental Markets Advisory Committee

POWER
What we do We access power station capacity (by supplying fuels in exchange for power) transport power cross-border and operate as a power trader. We also have the flexibility to offer products that mimic power station dynamics and economics. There is a natural synergy with our existing activities in natural gas, coal and carbon emissions, and by combining these functions we are able to offer a full range of multicommodity management solutions to power plant owners and developers, utilities and large industrial users, generators and suppliers, new market entrants and hedge funds. Where we do it Vitol has developed physical and financial positions throughout Europe. This augments our existing power activity in the US, where we are active in trading power forwards and options in the eastern states. We are also active across the UK, France, Germany and the Benelux countries, with a reach that is broadening to extend into Italy, Switzerland and Scandinavia. How we do it Take, for example, an investor in a power plant who wants to lock in a fixed rate of return. Vitol might propose a solution whereby we take the power the plant generates in exchange for fuel supply and emissions credits. The investor gets the comfort of a margin over a defined term, and is protected from volatility on power prices and the fuel needed to produce it. Our experience as an oil, gas and coal trader gives us a rare and profound understanding of the relationship between energy and fuel. We leverage this understanding to generate efficiencies, predict trends and develop effective long term risk management solutions. We are independent of any utility or finance house, we look to build and sustain long term relationships whenever possible and we have the liquidity, assets and reach to structure bespoke deals.

CARBON
500m TW
hours traded by Vitol in last 12 months in UK, France & Germany What we do In time, the carbon market could be the largest commodity market, surpassing even oil. Today, Vitol has one of the largest and most diverse carbon project portfolios in the world and our involvement and expertise in carbon markets is global and comprehensive. Where we do it Whilst Vitol has a global reach, we remain very much a hands-on, physical trader with a local presence where it matters. With carbon desks in Geneva, Singapore, Beijing, Dubai, Houston and London we cover the global carbon market from Europe to US, Japan to Australia and everywhere in between. How we do it Vitol is one of very few participants in the market whose involvement extends all the way from project inception to trading activity right through the value chain. The size and diversity of our projects portfolio allows us to take on trades and structures that others might have to syndicate. Although our portfolio is wide ranging we pride ourselves on being a small team enabling speed of decision making key in a dynamic and constantly changing environment. Our partnerships are key including our ownership of carbon credit aggregator CRM and our successful joint venture with ICECAP, to name but two. Ultimately, we are focused on delivering value for our partners, whatever their objective and our clients are as diverse as our portfolio. They include: Industrial companies looking to monetise their carbon position. Utility companies seeking liquidity in the marketplace. Governments, for whom Vitol can facilitate the meeting of compliance obligations. Pension and hedge funds, looking for a trading partner with solid expertise. Project developers, looking to maximise the profitability of their projects through our sophisticated portfolio and risk management solutions. Vitol is constantly looking for new partners in the carbon market. This highly complex market presents many risks commercial, political and legal and Vitol is ideally placed to help our partners safely navigate these hazards while adding real and measurable long term value. Key project initiatives worldwide: structure: AAU/CER/EUA Forestry CDM/JI Global trading voluntary US carbon

POWER TRADING

GENERATION UNIT

POWER

FUEL & CARBON EMISSIONS & TOLLING FEE

VITOL

GAS MARKET

COAL MARKET

EMISSIONS MARKET

01

32 VITOL
CASE STUDY

ENERGY 33

utility energy supply

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:  Win their fuel oil supply tender at competitive prices, acting as their eyes and ears around the global marketplace.  Bring in our expertise and recommend improvements to ensure optimum pricing, and possible price/margin hedging.  Review supply facilities and recommend improvements, including financing options.  Propose different supply arrangements e.g. coal, natural gas, LNG as well as possible CER projects. The utility company now has access to Vitols unrivalled global network for the sourcing of feedstocks, and benefits from our expertise in price hedging and our ability to source alternative energy supplies.

34 Vitol

ENERGY 35

ETHANOL

methanol

Industry Context This past year also saw a historic shift in the pattern of trade for ethanol. Until 2010 Brazil was the world leader in ethanol exports and the United States had been the worlds largest importer of fuel grade ethanol. That supply and demand relationship changed dramatically in 2010 with the United States ethanol market responding to growing ethanol demand globally, currency fluctuations and a historic level of sugar prices, by becoming a net exporter of ethanol. Vitol, through our global presence in the fuels markets and our ability to utilize our substantial terminal and shipping presence, actively participated in this dramatic market shift and we continue to look for opportunities as the markets continue to evolve. 2011 will see the implementation of the California Low Carbon Fuel Standard (LCFS) which will place increasingly stringent targets for the carbon intensity of transportation fuels used in the State of California. The LCFS will require participants to find creative solutions to supply fuel in this important market and Vitol is uniquely qualified to do this. The combination of the LCFS, combined with the current nationwide Renewable Fuel Standard, ensures

that ethanol trading will remain essential for any company exposed to the U.S. transportation fuel markets. 2011 and beyond will continue to bring increased ethanol mandates from the Renewable Fuel Standard in the US, the Renewable Energy Directive in Europe, and a variety of other programs around the world. Higher volumes of biofuels will be accompanied by more regulated markets. Each country and California itself, require not only individual quality specifications, but biofuels from specific feedstocks meeting specific carbon intensity requirements. This is an area where Vitol is able to accommodate and provide our customers with their specific Bio Fuel needs. Where we do it Vitol continues to actively participate in the growing world market for ethanol. In the U.S., now the worlds largest ethanol market, having surpassed long time leader, Brazil, Vitol maintains an important presence in the key markets of New York harbor, Chicago, Florida, Houston, San Francisco and Los Angeles. Vitol maintains ethanol storage, supply and distribution in all of those markets and continues to look for opportunities to grow and add value.

How we do it The second quarter of 2010 saw the startup of Vitols grassroots storage, blending, distribution and marketing of finished gasoline and biofuels in Port Canaveral, Florida. Canaveral is Vitols first entry into the U.S. market for rack marketing of transportation fuels. This important terminal location has had an excellent start and we have seen a rapid growth in our sales.

What we do Methanol is a highly versatile commodity and one for which demand is growing rapidly. Methanol derivatives find use in both energy and petrochemical applications. In the energy sector the market for methanol is expanding rapidly as methanol is used in transportation fuels and DME (dimethyl ether) is used as an LPG substitute, particularly in bottled gas markets. In the petrochemical sector methanol derivatives are used in everything from adhesives to paints and polyester to gasoline. In 2010, Vitol marketed over 2m tonnes of Methanol globally and has similar plans for 2011. A major player in the methanol marketplace since 1989, Vitol is a truly global trader and marketer of methanol and has the logistics reach, strategic storage capacity, arbitrage expertise and flexibility to both break-bulk and serve the diverse needs of end users.

Where we do it Vitol has methanol teams in Houston, Geneva, Rotterdam, London, Dubai, Singapore, and Beijing. Vitols key partnership in Oman Trading International supports its growing methanol business via its offtake from the Salalah Methanol Company. We also have long term supply and offtake relationships with producers and consumers in the US, Europe, Africa, the Middle East and Asia. How we do it We focus on building long term relationships based on our ability to provide security of supply from multiple supply sources. Large trading flows combined with comprehensive storage in key locations and our status as one of the worlds largest charterers of shipping mean we can meet practically any demand, anywhere, any time. We also have the risk management tools and financial stability to put in place pre-financing arrangements and manage risk regardless of market conditions.

2m

VITOL plans to MOVE 2M TONNES OF METHANOL GLOBALLY IN 2011

US MANDATE FOR ETHANOL CONTRIBUTION (GALLONS)

15bn
11bn
2006 2009 2015

4bn

36

VITOL
02 We have developed a strategic partnership with the London-listed Chelyabinsk zinc plant, the largest smelter in Russia

ENERGY 37

01 Vitol has chemicals storage facilities strategically situated in Rotterdam, Houston and Korea

01

02

Chemicals
What we do Vitol is a major and growing supplier of bulk raw materials from Asia and the Middle East to, European and US chemicals consumers. We deal directly with petrochemical producers and consumers, receiving shipments into our worldwide logistics facilities and using our reach and market knowledge as a global energy trader to identify and act upon arbitrage opportunities. Our business is focused on two main products: Benzene used among other things in the production of styrene, phenol and cyclohexane. Paraxylene a main feedstock for the manufacture of polyester. Where we do it Vitols Chemicals team operates on a global basis across Europe, the Middle East, Asia, the Far East and the US. We have strategically situated storage in Rotterdam, Houston and Korea, and we have a long term supply partnership in place with TPPI (Trans-Pacific Petrochemical Indotama). How we do it We have an in depth understanding of world energy markets and can react to changes in the chemicals marketplace quickly and decisively. This knowledge and speed of response, combined with our ability to move physical product, means we are able to tolerate price fluctuations and better manage risk.

NON-FERROUS METALS
What we do Euromin SA provides Vitol with trade expertise in the metals and mining sector. Trading through the Groups wholly owned subsidiary Euromin SA, we are active in base metal concentrates, ores, secondary raw materials and residues as well as primary base metals and minor metals. We trade around ten different metals representing some 30 products from ore to master alloys, from low value to high value, and from small volumes to major cargoes. Euromin specialises in zinc, from ores through to refined product, with the expertise to trade, distribute and market zinc metal through various industrial sectors. We deliver zinc metal and a wide range of zinc alloys to the steel mills and galvanizing plants. Euromin also supplies metal to the chemical, die casting and metallurgical industries. We have developed a key strategic partnership with the London-listed Chelyabinsk Zinc Plant, the largest smelter in Russia. Euromin is a significant international trader, also trading in copper ores and concentrates, lead and silver ores and concentrates, high purity indium metal and cadmium metal. Euromin benefits from the extensive network of Vitol Group offices around the world. Euromin SA is an Associate Trader Member of the LME (London Metal Exchange) and a member of the Galvanizers Association. Where we do it Our areas of operation include Europe, North America, Russia, Kazakhstan, Latin America, Mexico, Africa, the Middle East and China. How we do it Vitols status as a global energy trader gives Euromin access to new markets and allows the business to build on synergies generated within the Group. Euromin has a broad spectrum of customers and an equally broad offer: the capability to take raw materials to smelters and smelted metals to end users backed by the financial stability, risk management expertise and global reach of Vitol.

40+ Countries
Vitol supplies a comprehensive range of metal products (including specialist) to customers in over 40 countries worldwide

38 VITOL
CASE STUDY

ENERGY 39

Securing the future of a coal mine

Hillsborough Resources Ltd, a coal mine in Vancouver, turned to Vitol to help them meet their supply contracts. Vitols 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:  Vitol has contracted all of Hillsboroughs export coal for the next two years.  All of Hillsboroughs production is shipped by Vitol to a single, long term buyer the Mexican State utility company.  Vitol helped Hillsborough finance their ongoing commitment to us.

Vitols success in helping Hillsborough secure a long term future for the mine has led, ultimately, to Vitols acquisition of Hillsborough in November 2009. A sign of real confidence.

40 VITOL
01 Vitol works with producers in Brazil, Central America, Thailand, India and South Africa

ENERGY 41
02 Vitol provides effective risk management solutions to a wide variety of clients, including oil producers

01

02

SUGAR
What we do Vitol is a significant participant in the world sugar market, with a wealth of experience in the sector dating back to 1992. Today we trade up to 5% of the worlds physically traded sugar in free market areas, adding value to trade flows from producers in the Western and Eastern hemispheres to markets in North Africa, the Black and Baltic Seas and the Middle and Far East. Annually, we move 1.5m tonnes and trade 2.5m tonnes of raw sugar in bulk. We spot charter and time charter vessels ranging from 20,000 to 50,000 tonnes. Where we do it Vitol works with producers in Brazil, Central America, 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 their physical requirements. How we do it Vitol is ideally placed to draw on our knowledge of both energy and sugar, at a time when ethanol production is growing due to the mandated use of alternative fuels. We work with clients to help them to manage inherent risks in one of the most volatile of agricultural commodities. This could include making sense of a market such as India, which alternates from being a major exporter to a significant importer, as well as how to access opportunities that continue to develop in countries such as China. We invest time in building long term relationships with our customers, helping where necessary with finance initiatives and working together to anticipate and react to changing market conditions.
RAW SUGAR VITOL TRANSPORTS ANNUALLY

RISK MANAGEMENT SOLUTIONS

1.5m
tonnes
What we do Risk is not something that can always be avoided. Nor is it something that should always be avoided. But it should be managed. And risk is where Vitol and our customers often find opportunity, and our skill lies in managing the risk to optimise the opportunity. We can meet practically any risk management challenge and we have the breadth of experience to meet the specific needs of diverse customers with individually tailored solutions. Where we do it Our dedicated team manages risk across the globe. We have a major presence in Europe and the US and are increasingly active on new projects in Asia and Africa. The range of customers we serve is as varied as the projects we cover: from governments, utility companies and airlines all over the world to coal producers in Indonesia, emission reduction clients in China, power plants in the UK, oil producers in Kazakhstan and Africa and refineries in Canada. How we do it Our risk management skill has long been a cornerstone of our business success. Today, that expertise is available to our customers. Our worldwide customers include: Oil Producers RefinerS Utility Companies Transport Companies Shipping Fleets Airlines

RAW SUGAR VITOL TRADES ANNUALLY

2.5m
tonnes

42 VITOL
CASE STUDY

ENERGY 43

PHYSICAL SUPPLY AND RISK MANAGEMENT FOR AN AIRLINE

Vitol provided a key airline customer with the tools it needed to maintain and improve its competitive position.
What we did:  We agreed a global risk portfolio and hedge strategy to best meet the airlines needs.  Using Vitols risk management and trading teams, a best fit solution was developed to manage their price exposure.  In partnership with Vitol Aviations expanding physical into plane supply business, opportunities were also developed to link fixed price solutions with the physical supply, when this was aligned with the airlines risk management strategy.  Vitol continues to work with this customer to ensure that the risk management solution remains fit for purpose and competitive.  Vitol also continues to advise and offer solutions to help the airline manage the complex issues that arise from changing carbon emission legislation and their requirements for carbon credits, that help meet both legislative requirements and their corporate targets.  In Europe, Vitol Aviation is developing a carbon neutral, physical, into plane supply offer for this customer. As a direct result of our relationship with this airline customer, they have reduced their exposure to oil market price volatility, improved their physical into wing pricing and their relative competitive position, and are now developing, in partnership with Vitol Aviation, a Carbon Neutral position to meet their immediate and future legislative requirements.

44 VITOL

ENERGY 45

TERMINALS, Refining and shipping

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.
We have a presence in many key trading centres around the world and an investment strategy that will see us more than double our storage capacity within the next three years. The Vitol Group owns and charters a fleet of modern vessels with a truly global reach and we own, operate or have interests in refineries on three continents. To be a world class player means working to world class standards a fact reflected in our commitment to the highest safety and environmental standards, the constant pursuit of smarter, more efficient engineering solutions and transparent working relationships with local and state authorities, governments and pressure groups. And the feedback and interaction that we get from our largest customer, the Vitol trading team, is just one of the ways by which we are constantly seeking to improve.

46 VITOL
01 Euro Tank Amsterdam site on the Benzolweg 02 Euro Tank Amsterdam has a total storage capacity of 1,394,000m3, consisting of over 244 tanks

ENERGY 47

02

Terminals
01

What we do VTTIs mission is to serve the worldwide energy industry by linking oil and gas flows safely, efficiently and profitably. Today, VTTI is active in 11 countries around the world and offers a combined capacity of around 6m m3. This capacity is set to increase to around 8m m3 by 2013. Our strength derives from our knowledge and understanding of the energy sector. We know what our customers require of a storage facility because of the interaction with one of our key customers, the Vitol trading team hence our focus on the flexibility, loading capabilities and infrastructure needed to maximise trading opportunities, leverage economies of scale and make swift and decisive use of market insights. Where we do it VTTI is an integral part of a bigger picture that might see, for example, Vitol oil from Russia flow through Vitol pipelines to a Vitol ship destined for a VTTI terminal in Amsterdam. In building a global network, we have pursued a policy of investing in oil and gas terminals and associated pipelines at the major import/export locations or trans-shipment points around the world.

Terminals located in: ETT, Rotterdam, The Netherlands ETA, Amsterdam, The Netherlands ATPC, Antwerp, Belgium VNT, Ventspils, Latvia BNK, Kaliningrad, Russia FRCL, Fujairah, United Arab Emirates VTT Port Qasim, Karachi, Pakistan Vitco, Zarate, Argentina Seaport Canaveral, Canaveral, USA Navgas, Lagos, Nigeria Projects under development: ATT Tanjung Bin, Malaysia ETT3, Rotterdam, The Netherlands VTTI Kenya Ltd, Mombasa ROTAN Pipeline, The Netherlands Vassiliko, Cyprus How we do it Our holistic view of the energy sector allows us to accurately bridge the gap between asset people, who take a long term view, and traders, who have to make instant decisions. We never cut corners, always look to protect our assets and the environments and communities in which theyre located, and actively seek out those customers whose business synergies stand to deliver the greatest mutual commercial benefit.

Our Vitol Group expertise and experience encompasses upstream, trading, utilities, shipping and terminals, and so we are able to coordinate and direct resources, maximise efficiencies, shorten turnaround times and reduce costs. Above all, we deliver safe, intelligent, flexible solutions often born of local knowledge and expertise. From the vibrant Russian export market; to the hub of Europes oil industry; to the entry and exit point of the Persian Gulf; to the access point for Latin Americas growing internal market VTTI is adding lasting and measurable value safely and reliably.

6m m3 8m m3

CURRENT VTTI COMBINED CAPACITY

COMBINED CAPACITY OF VTTI BY 2013

48 VITOL
CASE STUDY

ENERGY 49

A Major New Terminal For Florida

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.
VTTIs Seaport Canaveral terminal is: Providing security of supply.  Setting new standards in efficiency and Health & Safety.  Bringing new sources of energy, at scale, to American markets.  Creating competition.  Supplying fuel to the cruise ship industry at Canaveral. This exciting new venture will make a major difference to the local economy and has turned what was once an area of unused marshland into a world-class terminal that promises to be of real significance to American markets and consumers.

50 VITOL

ENERGY 51

REFINING
What we do Vitol has been involved in refining since it was established in 1966, both through direct ownership and indirectly through processing agreements. Vitols growing refining presence is focused on three specific areas: Owned and Operated: Vitol currently owns and operates over 100 kbd of refining assets closely linked with our tankage facilities, in Fujairah and Antwerp. Crude Supply Agreements, Products Offtake and Stock Financing: We continue to be closely involved with North Atlantic Refining Company (NARL), the refinery in Canada that Vitol purchased in 1994. We purchase all of the crude oil required by the refinery ( around 115 kbd), we purchase all of the products except those required for local retail, and we finance the refinery operation. In the US, we have a similar supply/offtake arrangement with Coffeyville Resources Refining and Marketing for about 80 kbd. Our global energy trading presence, combined with our strong balance sheet, allow us to tailor specific agreements that can provide benefits to all our refining counterparties. Processing Agreements: These allow Vitol to lease unused refining capacity to try and benefit from positive refining margins. Our global access to crude and feedstock may provide attractive crude input options, and the products produced can be made available to our product trading teams. The refinery profits from the processing fee and the ability to lock in a refining margin for that part of its capacity that is leased to Vitol. Further detail As more detailed background to Vitols refining activity, the companys first actual ownership and operation of a refinery came when it acquired what was then known as the Come By Chance refinery in Newfoundland in 1994. This was subsequently renamed the North Atlantic Refining Company (NARL). Owning and operating this refinery for 13 years with an excellent operating performance provided the experience that underpinned Vitols subsequent broader expansion into the refining sector. In October 2006 Harvest Energy acquired NARL from Vitol. However a condition linked to the sale was a continuing crude oil supply and refined product offtake agreement between Harvest and Vitol Refining SA. Vitol provides NARL with comprehensive working capital, financing of feedstock and finished products, including Letters of Credit, in-transit and in-storage inventory and trade credit. Additionally, Vitol provides feedstock procurement and shipping, finished product marketing and shipping, price risk management, administrative and back office services. The agreement with Harvest also requires that Vitol purchase and lift all refined products produced by NARL, except for certain excluded refined products to be marketed by NARL in the local Newfoundland market. Also, the agreement provides that the ownership of substantially all feedstock and refined product inventory at the refinery be retained by Vitol and that during the term of the agreement, Vitol is required to provide feedstock for delivery to the refinery as well as the obligation to purchase all refined export products produced by the refinery. Vitols refinery expansion continued with the acquisition of a 90% stake in the Fujairah Refinery Company Limited ( FRCL) in 2007 with refining and storage assets in the Emirate of Fujairah (UAE), on the Indian Ocean, south of the Straits of Hormuz. The refinery had been mothballed since 2003 and following maintenance it is now able to operate at up to 80,000 barrels per day. There is still additional land to expand and further investment opportunities are being considered. Since the purchase, significant additional investment has been made, with now over 1m m3 of product storage in place. In January 2010, Vitol completed the acquisition of the refining assets in Antwerp that previously belonged to Petrolpus Holding AG. The facilities are located in the Port of Antwerp and are connected to an extensive pipeline network and harbour infrastructure providing flexibility for hydrocarbon feedstock, intermediates and finished products. The Facilities have one of the largest bitumen processing plants in the Benelux region with a capacity of approximately 875,000 tonnes per annum and a tank storage facility with a potential capacity of approximately 450,000 cubic metres after additional investment. The future Vitol continues to look for opportunities to work with crude oil producers to access our owned refinery system and with other refiners to optimise their investment by accessing the best possible crude oil and feedstock alternatives, getting best values on products and leveraging our access to the best possible financial terms.

80,000

The fujairah refinery is now able to REFINE 80,000 barrels per day at maximum capacity

52 VITOL
01 M.V, FRATERNITY

ENERGY 53

01

SHIPPING
What we do We are physical traders and we move energy from markets that are in surplus to markets that are in deficit, across borders and oceans. We move it competitively and efficiently, fully conscious of our responsibility to manage all our operations safely and with due care for the environment. A world class shipping operation is an essential part of the management of our supply chain, underpinned by the depth of operational experience that exists across the shipping team. Where we do it We have commercial and operational offices in five of the worlds most strategic shipping locations: London, Singapore, Houston, Geneva and Bermuda giving us a leading strategic and logistical edge in a global market where time zones blend into one. How we do it Shipping markets are highly volatile and nowhere are the principles of supply and demand more relevant. Through close contact with our trading groups and utilization of our own market intelligence, Vitol has the best possible opportunity to anticipate worldwide freight movements. Within Vitol, the shipping team is not only a service provider, transporting commodities in the safest, most efficient and cost effective way possible but is a competitive business in its own right. Commercial and operational control of shipping allows the trading groups to provide ultimate flexibility to their customers as well as offering risk management solutions for the groups freight exposure. Vitol contracts vessels that are underpinned by the core cargo flows of the trading groups, however, these contracts need to be commercially viable in their own right. Contracts will vary in terms of structure and period from a few weeks to many years. The aim of the shipping group is to maximize the utilisation and thereby the returns, from these assets under our commercial control. Shipping profitability is maximized and exposure is itself managed using a range of third party and internal cargoes, contracts of affreightment and derivatives. The portfolio of cargoes and shipping activity is extensive and includes crude oil, oil products, chemicals, dry cargo, such as coal and sugar, LPG and LNG. We are expanding our activities in the dry cargo market where, as with every other Vitol business, market intelligence is key to our success. Vitol is the largest independent charterer of product tankers in the world, shipping nearly 400m tones of crude oil and products in 2010. At any one time there are over 200 tankers on the water performing voyages for Vitol in either a short term (spot market charter) or long term capacity. In 2010 we completed almost 5,300 voyages, compared to 5,100 in 2010. Nowhere are the core skills that underpin all of Vitols activity more prevalent than in our shipping business: a combination of global reach and local understanding, leadership and partnership, speed and flexibility results in a highly efficient and successful business.

5,291

voyages IN 2010

54 VITOL

ENERGY 55

UPSTREAM
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.
The upstream business is at the core of the oil and gas industry using technical and commercial expertise to explore for, develop and produce hydrocarbon resources both onshore and offshore and often in challenging locations and conditions. We have the global reach, financial scale and synergies with shipping, trading and terminals to identify and act on new opportunities wherever and whenever they occur. We also have the swiftness of thought and decisiveness of action to bring new projects to life in months rather than years.

56 VITOL
01 Drilling operations at Arawaks Akzhar field in Kazakhstan. Arawak Energy is a growing E&P company operating in Russia, Kazakhstan and Azerbaijan

ENERGY 57

01

Asset locations worldwide

RUSSIA

GHANA:

Offshore Cape Three Points Offshore Cape Three Points South

Congo Brazzaville:

Russia:

KAZAKHSTAN AZERBAIJAN

Block XI Block XIV

NIGERIA:

North Irael Sotchemyu-Talyu South Sotchemyu Prichalny East Kamensky North Zeleneborsk Ledovy Licence 67 South Kadzherom
Kazakhstan:

OML 113
CAMEROON:

NIGERIA GHANA CAMEROON CONGO

Etinde Permit
philippines
philippines:

Galoc field Octon field

Akzhar Besbolek Saigak Karataikyz Alimbai Tamdykol

Azerbaijan:

Northern Block Central Block Coastal Block

UPSTREAM
What we do Our geoscientists and engineers work together with the commercial teams to identify areas and assets considered highly prospective. We take managed risks with maximum diligence and our short command chain enables us to react to opportunities as soon as they arise. Vitols upstream strategy encompasses organic growth through exploration in parallel with highly opportunistic acquisitions of new ventures, but always with a clear focus on projects that allow us to build from our core areas. We couple this with an active global network, identifying and realising the potential of undervalued assets worldwide. We also seek out upstream assets where Vitol would be well positioned to become an offtaker, securing the commercialisation of the resources and providing additional volumes to our trading business. Beyond this, we may act as a facilitator in multipartner transactions, our 360 capabilities enabling us to find connections, bridge gaps and deliver innovative financial solutions where others cannot. Where we do it Our upstream operations are split into two dedicated teams. Inside the FSU, Vitols interests are represented by our wholly owned subsidiary Arawak Energy, which has built a portfolio of 17 assets balanced between production, development and exploration in Kazakhstan, Russia and Azerbaijan. Outside the FSU, Vitol E&P holds exploration and producing assets in the Philippines and a portfolio of development and exploration properties in West Africa Ghana, Nigeria, Cameroon and Congo. As at 31 December 2010, Vitol had equity production of 18,000 barrels of oil per day.

Production, development and exploration Development and exploration

How we do it Our technical teams are paramount to our success. Their interpretation and analysis of the geological and geophysical data lay the foundations for exploration and development decisions. Our engineering and operations teams convert those decisions into actions, employing rigorous planning and precise execution to drilling programmes, development schemes or ongoing management of production and reservoirs. We continuously assess risk whether technical or commercial, and have an unfailing focus on health, safety and environmental issues. We have the operational, financial and logistics credibility to build successful local partnerships all over the world, and our ability to cement strong, transparent relationships with people on the ground makes us a valued long term partner.

185m boe 18,000

barrels of oil per day OF EQUITY PRODUCTION

proved plus probable reserves

58 Vitol
CASE STUDY

ENERGY 59

MARKETING A New Crude Oil

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 assay test in an independent laboratory.  Establish a value for the new crude grade, benchmarked against global marker crudes.  Run a test cargo in refineries to prove the logistics and the value.  Agree a long term contract with the producer for crude oil sales. The results are better netbacks for the producer and Vitol manages the on-going marketing of the new grade.

56 Vitol 60 ENERGY
NETWORK LOCATIONS

Worldwide OFFICES
EUROPE Netherlands Vitol Holding B.V. Vitol B.V. Vitol S.A. Rotterdam Branch Anker Coal Company B.V. Petroned B.V. Anchor Insurance B.V. Vitol Aviation B.V. K.P. van der Mandelelaan 130 3062 MB Rotterdam P.O. Box 1546 3000 BM Rotterdam Netherlands Tel (31 10) 498 7200 Fax (31 10) 452 9545 VTTI B.V. K.P. van der Mandelelaan 130 3062 MB Rotterdam P.O. Box 1546 3000 BM Rotterdam Netherlands Tel (31 10) 498 7351 Fax (31 10) 453 1663 Switzerland Vitol Holding SARL Vitol S.A. Vitol Central Asia S.A. Vitol Refining S.A. Euromin S.A. Boulevard du Pont dArve 28 CH 1205 Geneva P.O. Box 384, 1211 Geneva 4 Switzerland Tel (41 22) 322 1111 Fax (41 22) 781 6611 Anchor Insurance S.A. Route des Acacias 54 1227 Geneva-Carouge Switzerland Tel (41 22) 300 0435 Fax (41 22) 827 6125 United Kingdom Vitol Broking Ltd. Vitol Services Ltd. Belgrave House 76 Buckingham Palace Road London SW1W 9TQ United Kingdom Tel (44 20) 7973 4200 Fax (44 20) 7824 8239 Euromin S.A. London Branch Tel (44 20) 7917 8960 Fax (44 20) 7917 8961 Tlx 423421 Latvia Riga Representative Office Vau Street 3, Riga LV 1050, Latvia Tel (371) 6771 5975 Lithuania Mazeikiai Representative Office Dauksos 34-18, LT - 89128 Mazeikiai, Lithuania Tel (370 443) 20440/41 Fax (370 443) 20442 Ukraine Ukraine Representative Office Bogdana. Khmelnitskogo str, 48 6th Floor, Kiev, 01030 Ukraine Tel (380) 44538 1513 Fax (380) 44538 1514

AFRICA Ghana Accra Representative Office African Industries Building Valco Road Heavy Industrial Area PMB Community 1 Tema, Ghana Tel (233 22) 21 6912 Fax (233 22) 21 6913 Nigeria Hyson (Nigeria) Ltd. West Wing, 3rd Floor SAPETRO Towers Plot 98, 7 Adeola Odeku Street Victoria Island Lagos, Nigeria Tel (234 1) 461 0765 Fax (234 1) 461 0768/69 Hyson (Nigeria) Ltd. 4th Floor, Ceddi Plaza Plot 264, Tafawa Balewa Way Central Business District Abuja, Nigeria Tel (234 9) 461 8118 Fax (234 9) 461 8119 Morocco Casablanca Representative Office Twin Center, Tour Ouest, 16me tage Angle Bvds Zerktouni et Al Massira 20100 Casablanca, Morocco Tel (212 522) 958247 Fax (212 522) 958023 Cape Town Cape Town Representative Office Hudson Building, 1st floor 28 Hudson Street Cape Town 8001 South Africa Tel (27 21) 4010500 Fax (27 21) 401 0501 NORTH AMERICA Houston Vitol Inc. 1100 Louisiana Street Suite 5500 Houston, TX 77002-5255 United States of America Tel (1 713) 230 1000 Fax (1 713) 230 1111 Bermuda Vitol Energy (Bermuda) Ltd. Vitol Refining S.A. Bermuda Branch Calson (Bermuda) Ltd. Sutherland Place 10/12 Burnaby Street Hamilton HM 11, Bermuda Tel (441) 295 1408 Fax (441) 295 1406 Anchor Insurance Group Rembrandt Insurance Company Ltd. 25 Church Street P.O. Box HM 824 Hamilton HM BX, Bermuda Tel (441) 295 9911 Fax (441) 292 1702

California Vitol Aviation Company 300 Continental Blvd. #315 El Segundo, California CA 90245 United States of America Tel (1 310) 416 9180 Fax (1 310) 416 9185 Canada Vitol B.V. Bankers Hall Hollinsworth Building Suite 600, 301 8th Avenue S.W. Calgary, Alberta T2P 1C5 Canada Tel (1 403) 313 9003 Fax (1 403) 313 9004 SOUTH AMERICA Argentina Vitol Argentina S.A. Alicia Moreau de Justo 140 1st floor Puerto Madero, C1107 AAD Buenos Aires, Argentina Tel (54 11) 6325 0000 Fax (54 11) 6325 0099 Brazil Vitol do Brasil Ltda. Vitol do Brasil Maritima Vitol do Brasil Distribuidora Ltda. Praia do Flamengo, 154-9th Floor CJ. 901, Rio de Janeiro RJ 22210-906, Brazil Tel (55 21) 3235 8200 Fax (55 21) 3235 8209 Peru Euromin Peru S.A.C. Lima Office Miguel Dasso 230 - office 702 Lima, Peru Tel (511 4) 213 773 / 223 407 Fax (511 4) 217 206 ASIA China Beijing Representative Office Room 912-913 Hua Bin International Building No. 8 Yong An Dong Li Jian Guo Men Wai Avenue Chaoyang District Beijing 100022 Peoples Republic of China Tel (86 10) 8528 9033 Fax (86 10) 8528 9108 India Mumbai Representative Office Dynasty Business Park A Wing, Office No 502 Andheri Kurla Road J.B. Nagar, Andheri - East Mumbai 400 059, India Tel (91 22) 6725 5371/74 Fax (91 22) 6725 5370 Kazakhstan Almaty Representative Office 13 Al-Farabi Nurly Tau 2 V, 6th Floor, 601 Almaty 050059, Kazakhstan Tel (7 727) 311 1099 Fax (7 727) 311 1109

Singapore Vitol Asia Pte Ltd. Vitol Singapore Pte Ltd. 260 Orchard Road The Heeren #13-01 Singapore 238855 Tel (65) 6737 9922 Fax (65) 6737 0917 Tlx 33473 Oman Trading International Ltd. Singapore Representative Office 260 Orchard Road #12-02/03 The Heeren, Singapore 238855 Tel (65) 6735 1937 Tel (65) 6735 1921 MIDDLE EAST Bahrain Vitol Bahrain E.C. National Bank of Bahrain Tower 18th floor (181), Building 113 Government Avenue Manama Town 316, Bahrain Tel (973) 17 218855 Fax (973) 17 224793 Dubai Vitol Dubai Ltd. Level 5, Precinct Building 2 Dubai International Financial Centre (DIFC) P.O. Box No. 506514, Dubai United Arab Emirates Tel (971 4) 428 1800 Fax (971 4) 363 7467 Oman Trading Intl. Level 5, Precinct Building 2 Dubai International Financial Centre (DIFC) P.O. Box No. 506515, Dubai United Arab Emirates Tel (971 4) 428 1888 Fax (971 4) 363 7468 RUSSIA Moscow Representative Office 12 Tverskaya Street Building 1, Floor 5 125009 Moscow, Russia Tel (7 495) 956 2739/42 Fax (7 495) 956 2741

Latvia Ventspils Nafta Terminal Ltd. 75 Talsu Street, Ventspils LV-3602, Latvia Tel (37 1) 6366 4090 Fax (37 1) 636 24341 Cyprus Vassiliko Representative Office 6 Kondylaki Street, 1090 Lefkosia P.O. Box 24676, 1302 Lefkosia Cyprus Tel (357 22) 818 884 Fax (357 22) 873 634 AFRICA Kenya VTTI Kenya Ltd. Maraket House Elgeyo Marakwet (North) Road off Argwings Kodhek Road P O Box 363 -00606 Kilimani, Nairobi, Kenya Tel: (254 20) 2384232 Fax: (24 20) 2384233 Nigeria Navgas Ltd. 23 Creek Road, Apapa Lagos, Nigeria Tel (234 80) 6236 8192 ASIA Pakistan VTT Port Qasim North Western Zone Karachi 75020, Pakistan Phone (92 21) 4720 500 Fax (92 21) 4730 136 Singapore ATT Tanjung Bin Sdn Bhd 260 Orchard Road The Heeren #13-01 Singapore 238855 Tel (65 6737) 9922 Fax (65 6737) 0917 Horizon Singapore Terminals (Pte) Ltd. 11 Meranti Crescent Jurong Island Banyan LogisPark Singapore 627 806 Tel (65) 6303 8200 Fax (65) 6303 8234 MIDDLE EAST Fujairah Fujairah Refinery Company Ltd. P.O. Box 1592, Fujairah, UAE Tel (9 719) 228 1188 Fax (9 719) 222 8344 RUSSIA CJSC Baltiyskaya Nefteprevalochnaya Kompaniya (ZAO BNK) Oil Terminal 18 Sadovaya Street 238520 Baltiysk Kaliningrad Region, Russia Tel (7 40145) 20267 Fax (7 40145) 20267

NORTH AMERICA Florida Seaport Canaveral LLC 555 Hwy 401 Cape Canaveral, FL 32920 United States of America Tel (1 321) 783 4890 Fax (1 321) 783 4892 Houston Coastal Caverns, Inc. 1100 Louisiana Street Suite 5500 Houston, TX 77002-5255 United States of America Tel (1 713) 230 1000 Fax (1 713) 230 1111 Oklahoma Blueknight Energy Partners, L.P. 6120 South Yale Ave, Suite 500, Tulsa, OK 74136 Phone: (1 918) 237 4032 SOUTH AMERICA Argentina Vitco S.A. Camino Costa Brava Parque Industrial Zrate B2800DCA Zrate Buenos Aires, Argentina Tel (54 3487) 423 382

UPSTREAM
NORTH AMERICA Canada Hillsborough Resources Ltd. The Marine Building, Suite 1100 355 Burrard Street, Vancouver NC V6C 2G8 Tel: (1 604) 684 9288 Fax (1 604) 684 3178 AFRICA Ghana Vitol Upstream Ghana Ltd. 21 Aviation Road Airport Residential Area PO Box KIA 30414 Accra, Ghana Tel (233 302) 78 1124/5 Fax (233 302) 78 1126 Nigeria Vitol Exploration Nigeria Ltd. 10th Floor, St Nicholas House Catholic Mission Street Lagos, Nigeria Tel (234 1) 461 0460 Fax (234 1) 461 0464 ASIA Singapore Galoc Production Company WWL 260 Orchard Road The Heeren #13-01 Singapore 238855 Tel (65) 6248 5360 Fax (65) 6248 5370 United Kingdom Arawak Energy UK Ltd. Belgrave House 76 Buckingham Palace Road London SW1W 9TQ United Kingdom Tel (44 20) 7973 4285 Fax (44 20) 7824 8466

TERMINALS
EUROPE Netherlands Euro Tank Amsterdam B.V. Jan van Riebeeckhavenweg 9 1041 AD Amsterdam Harbour no: 2134 Netherlands Tel (31 20) 587 2121 Fax (31 20) 611 9768 Euro Tank Terminal B.V. Moezelweg 151 3198 LS Europoort-Rt Harbourno: 5610 P.O. Box 1000 3180 AA Rozenburg Netherlands Tel (31 181) 240024 Fax (31 181) 240010 Belgium ATPC (Antwerp Terminal & Processing Company) Beliweg 20, Haven 279 2030 Antwerpen, Belgium Tel (32 3) 303 1600 Fax (32 3) 303 1660

RIGA, LATVIA MAZEIKIAI, LITHUANIA

ALMATY, KAZAKHSTAN KALININGRAD, RUSSIA AMSTERDAM, NETHERLANDS LONDON, UNITED KINGDOM FUJAIRAH, UAE ROTTERDAM, NETHERLANDS Vancouver, CANADA CALGARY, CANADA GENEVA, SWITZERLAND BEIJING, CHINA DUBAI, UAE

KARACHI, PAKISTAN

MOSCOW, RUSSIA CASABLANCA, MOROCCO KIEV, UKRAINE VASSILIKO, CYPRUS EL SEGUNDO, USA TULSA, USA ABUJA, NIGERIA HOUSTON, USA LAGOS, NIGERIA TEMA, GHANA SINGAPORE MUMBAI, INDIA

CAPE CANAVERAL, USA

HAMILTON, BERMUDA

BAHRAIN

LIMA, PERU nairobi, kenya RIO DE JANEIRO, BRAZIL

CAPE TOWN, SOUTH AFRICA

BUENOS AIRES, ARGENTINA