Global commodities trader Vitol is considering the sale of its VTX Energy Partners division, a US shale oil and gas producer, reported Reuters, citing sources.
The transaction, valuing the business at up to $3bn including debt, seeks to capitalise on VTX’s position as one of the few remaining privately owned operators in the Permian Basin, a prime US oilfield.
Vitol’s decision comes after a wave of acquisitions in the Permian Basin over the past two years, where many unlisted energy producers were acquired by listed companies aiming to expand their scale.
This scarcity value of the business may enable Vitol to secure a significant return on its investment in VTX, having committed $1bn in 2022 to establish the company.
Vitol is collaborating with investment bankers at Jefferies to gauge buyer interest in VTX’s assets in the Permian Basin’s southern Delaware region.
These deliberations are at an early stage and a deal is not guaranteed, the report said.
VTX Energy Partners produces approximately 46,000 barrels of oil equivalent per day from around 46,000 net acres (186km²) across two counties in Texas.
A water treatment business owned by the company is also part of the sale effort.
Vitol and Jefferies have not yet responded to requests for comment.
This venture marks Vitol’s second US shale initiative, following the launch of Vencer Energy in July 2020 to acquire assets at reduced valuations during the Covid-19 pandemic.
Vitol has recently agreed to acquire interests in assets owned by Eni in Cote d’Ivoire and the Republic of Congo, valued at $1.65bn as of 1 January 2024.
The acquisition involves oil and gas assets, with Vitol gaining a 30% participating interest in the Baleine project in Cote d’Ivoire, where Eni holds a 77.25% ownership interest.
