Swiss oil trader Vitol has launched a new upstream firm in Australia following the acquisition of Shell’s downstream business in the country for $2.6billion.
Viva Energy includes the Dutch giant’s Geelong refinery and 870-site retail business, its bulk fuels, bitumen, chemicals and part of its lubricants businesses in Australia.
The new company will be the exclusive distributor of Shell-branded fuels and lubricants in the country.
The transaction completes a sale-purchase process started in February, when Vitol signed a binding agreement with Shell over its Australian assets.
In February 2011 the Swiss firm took over Shell’s Africa downstream business, creating Vivo Energy, a joint venture between Vitol (40% interest), Helios Investment Partners (40%) and Shell (20%).
“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,” said Scott Wyatt, chief executive of Viva Energy.
“We expect to invest $1billion 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 (research and development) and the high level of service they have come to expect of us.”
The latest deal closely follows the purchase of downstream business in Germany by Vitol.
In July, Varo Energy, a joint venture between Vitol (50% interest) 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.
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