Vitol Said to Be in Talks to Sell Shale Unit to Carnelian, EnCap

Vitol Group is in late stage talks to sell its shale oil venture VTX Energy Partners LLC to a consortium of two private equity buyers - Carnelian Energy Capital and EnCap Investments, a deal that would mark a scaling back for the trader in US upstream oil and gas production.

(Bloomberg) — Vitol Group is in late stage talks to sell its shale oil venture VTX Energy Partners LLC to a consortium of two private equity buyers – Carnelian Energy Capital and EnCap Investments, a deal that would mark a scaling back for the trader in US upstream oil and gas production. The companies could sign the deal as soon as next week, according to people familiar with the matter who declined to be named citing confidential talks. The valuation being discussed is around $2.3 billion, one of the people said.

A deal would mark Vitol’s second US shale oil exit in two years following the sale of Vencer Energy to Civitas Resources for $2.1 billion in 2024. Known as the world’s biggest independent oil trading house, Vitol started VTX in 2022 with the management of ATX Energy Partners and the intention to build up a portfolio of producing assets. VTX produces nearly 46,000 barrels of oil equivalent a day in the Texas portion of the Delaware Basin.

Representatives for Vitol, EnCap and Carnelian didn’t immediately return calls and emails seeking comment. War in the Middle East and disruptions to flows out of the Strait of Hormuz have elevated oil prices this year that were expected to fall in the face of an expected supply glut. Higher prices are spurring more firms to pump more crude in the US, already the world’s biggest producer of crude oil.

Still, firms looking to expand their drilling acreage are butting up against a lack of availability after a period of massive industry consolidation. Vitol has been on an asset buying spree in recent years as it looks to invest a big cash pile built up after a period of record profitability. It bought Italian refiner Saras SpA as well as coal trader Noble Resources Trading Ltd.

In 2025, it announced a $1.65 billion deal to buy oil and liquefied natural gas projects from Eni SpA in Ivory Coast and the Republic of Congo. —With assistance from Vinicy Chan.