Vitol S.A and Felda Global Ventures Holdings Berhad sign MOU
Vitol S.A and Felda Global Ventures Holdings Berhad (FGVH) today signed a Memorandum of Understanding (MOU) to collaborate on the supply, international trading, marketing, logistics operations and risk management on various commodities, excluding oil and fats.
The signing ceremony was held in London, United Kingdom today and witnessed by the Honourable Prime Minister of Malaysia, Dato’ Sri Mohd Najib Tun Abdul Razak and FELDA Chairman, Tan Sri Haji Mohd Isa Dato’ Haji Abdul Samad.
Under the terms of the MOU, the two parties plan to incorporate a joint-venture company in Kuala Lumpur with FGVH as the majority shareholder.
Dato’ Sabri Ahmad, Group President and CEO of FGVH, said: “This MOU between FGVH and Vitol is line with FGVH’s growth strategy in the non-oils sector and is one of the channels for both upstream and downstream marketing that is intended to transform FGVH into a truly global player. Both FGVH and Vitol are currently working towards a final agreement that will result in the creation of a new joint venture company in which FGVH will hold a majority stake.”
Ian Taylor, President and CEO of the Vitol Group, said: “We are pleased to have signed this MOU with FGVH and we look forward to working closely with them in various commodities and areas already identified where we believe we can add value for the benefit of both parties. This collaboration enhances our already significant presence in Malaysia, which is currently focused on our existing energy trading business and terminal operations.”
FGVH is incorporated in Malaysia and directly owned by the Federal Land Development Authority (FELDA), an agency of the Government of Malaysia. FGVH is a global agricultural and agri-commodities company with operations across ten countries and presently the 3rd largest palm oil plantation operator in the world. FGVH currently operate 343,521 hectares of oil palm plantation estates in Malaysia that produced 5.2 million metric tons of fresh fruit bunches in 2011.
FELDA Holdings Berhad (FHB), a 49% owned associate of FGVH, is the world’s largest producer of crude palm oil with 3.3 million metric tons produced in 2011 and FGVH’s subsidiary, MSM Holdings which is listed on the main market of Bursa Malaysia, is the leading refined sugar producer in Malaysia with an annual production capacity of over 1.1 million metric tons of sugar products.
FHB also owns and operates crude palm oil and vegetable oil terminals in Malaysia and Indonesia with a current capacity of approximately 772,050 metric tons.
Further details about FGVH and FELDA are available at www.feldaholdings.com
The Vitol Group was founded in 1966 in Rotterdam, the Netherlands. The company has grown significantly to become a major participant in world energy markets and is now the world’s largest independent energy and commodity trader. Its trading portfolio includes crude oil, petroleum products, bunker fuel, LPG, LNG, natural gas, coal, power, metals, carbon emissions and sugar. Through its trading business, Vitol has established itself in shipping as one of the world’s largest charterers of crude oil and oil product tankers. Vitol trades over 400 million metric tons of crude oil, petroleum products and commodities annually and its 2011 revenues were US$297 billion.