By Dmitry Zhdannikov and Julia Payne
LONDON (Reuters) – Several high-profile energy traders have left oil majors for trading houses in recent weeks, multiple sources told Reuters on Thursday, as talent follows asset exchanges and trading houses increase bonuses.
Trading houses such as Vitol and Trafigura have acquired tens of billions of dollars in assets from oil giants over the past decade, taking advantage of profits that have soared since 2022 due to energy market volatility caused by Russia’s war in Ukraine.
Private commodity trading houses have shut down refineries and terminals as oil giants come under increasing pressure from shareholders to invest in greener energy.
“We are building our asset base while majors have fewer and fewer assets to trade. Naturally, traders are leaving to join us,” said a top executive at a major trading house.
The world’s largest and most profitable oil trader Vitol has hired Shell’s (LON:) head of LNG marketing Mehdi Chennoufi, oil trader Lionel Ader from French oil giant TotalEnergies (EPA:) and Shell’s West African crude trader Michas Barry, three sources known. with the developments.
Vitol also hired Jordan Dowle, one of Trafigura’s top crude traders, who specialized in the North Sea and Mediterranean markets, the sources said.
Trafigura has hired at least six traders from oil giants, including Jason Breslaw and Tamoor Ali, the London-based oil producers of BP (NYSE:), according to three separate sources.
The recruitment follows recent high-profile departures from BP and Shell.
BP’s trading head Sven Boss-Walker left the company after 25 years, Reuters reported last month. According to a trade source, BP staff were told he was joining an independent start-up.
Trading house Mercuria hired Steve Hill, head of LNG at Shell, earlier this year. Last year, Mercuria hired Bill McGrath from Shell as managing director for low carbon.
John Lo, previously a manager at Shell LNG trading and refined products, has left to specialize in carbon credits, two separate sources said.
Vitol, Trafigura, Mercuria, BP and Shell declined to comment.
The hiring spree by trading houses continues a trend that began a decade ago when top commodity traders left banks like Goldman Sachs, Morgan Stanley and JP Morgan after the US imposed caps on proprietary trading following the collapse of Lehman Brothers and Bear Stearns.
According to at least a dozen trading sources, most traders at Vitol, Trafigura and others get their wages as a percentage of their book’s profits. According to sources close to the companies, it is not unusual for a top trader to earn millions of dollars during a successful year.
Vitol, which makes many of its senior traders partners in the firm, paid $5 billion in dividends last year and rival Trafigura paid $5.9 billion. According to the sources, this resulted in payments of tens of millions of dollars to some partner shareholders.
Vitol and Trafigura declined to comment.
BP, Shell and other major companies are struggling to match such bonuses, the sources say, because as listed companies they face greater criticism from shareholders. BP and Shell CEOs Murray Auchincloss and Wael Sawan each took home just over $10 million in salary and bonuses last year.
