AD Ports teams up with KMTF to create offshore and tanker JV
UAE-based port operator AD Ports Group has joined forces with KMTF (Kazmortransflot), a fully-owned offshore logistics and services subsidiary of the Kazakh National Oil Company (KazMunayGas), to create a new offshore and tanker joint venture.
As explained, the companies signed a shareholder agreement under which 51 percent of JV will be owned by AD Ports Group and 49 percent owned by KMTF. The new firm will provide offshore and shipping services for energy companies in the Caspian Sea.
The joint venture, which will look at investments opportunistically will offer a broad range of services, including offshore support vessels, integrated offshore logistics and subsea solutions and, at a later stage, will offer container feedering, ro-ro and crude oil transportation in the Caspian Sea and the Black Sea.
The enterprise will tender for a number of identified projects with estimated maritime contract values of more than $780 million.
“By combining AD Ports Group’s diverse portfolio of global maritime services and shallow water offshore expertise with the strong fleet, track record and local knowledge of KMTF, the joint venture will create an important new entrant in the highly valued Caspian Sea and the Black Sea region. The endeavour can expect to create opportunities around the region, particularly with the ongoing upgrades of fleets and facilities currently taking place, and some major offshore projects, such as the multi-billion-dollar expansion of the Kashagan field,” according to AD Ports.
Furthermore, AD Ports Group and KMTF signed a seven-year vessel pooling agreement, the joint venture includes the provision of several tankers for the transportation of crude oil internationally.
Specifically, the agreement will see KMTF’s fleet working alongside SAFEEN Group’s existing Aframax tanker, with the intent to acquire further vessels in the short term.
According to the companies, the objective is to jointly carry 8-10 million tonnes of crude annually in the medium term.
“This new joint venture with KMTF opens the door to enormous opportunities in the Caspian Sea, which plays a key role in global energy production, and is serviced by prominent players within the energy sector. By providing maritime services in this key market, AD Ports Group has reached a new level of internationalisation and development,” Falah Mohammed Al Ahbabi, Chairman of AD Ports Group stated.
“As the world looks for reliable energy sources in challenging conditions, we will be able to provide a full portfolio of services supported by a modern fleet and teams of experts combining local knowledge and global experience. Companies operating in the Caspian Sea oil fields are looking for reliable partners and a broad range of value-added services. Working together, KMTF and AD Ports Group will provide the ideal solution,” Mirzagaliyev Magzum, Chairman, KazMunayGas, added.
Last month, AD Ports signed an agreement to acquire an 80% equity stake in Dubai-based Global Feeder Shipping (GFS), a global container shipping company.
AD Ports Group will look to integrate GFS into its maritime cluster, which includes a portfolio of shipping, offshore and subsea services.
Aligning GFS services with AD Ports Group companies SAFEEN Feeders and Transmar will make AD Ports Group the world’s largest independent feeder company by vessels owned, with an owned fleet of 35 vessels, and the third largest globally by volumes carried with a total container capacity of 100,000 TEUs., according to the company.