ADNOC buys Middle East assets of UK-based offshore logistics provider
ADNOC Logistics & Services, the shipping and maritime logistics arm of ADNOC, has made a move to acquire all of the UAE-based assets of Speedy Hire, a UK provider of tools and equipment hire for the oil & gas, construction, and industrial sectors.
ADNOC said on Monday that, under the terms of the acquisition, ADNOC L&S will take ownership of Speedy’s equipment, stock and other fixed assets relating to its Middle East business.
The acquisition adds more than 2,000 pieces of equipment, including cranes, forklifts, firetrucks and other high-value machinery used for offshore and onshore material handling services, to ADNOC L&S’ asset base.
The transaction includes a Transitional Services Agreement with ADNOC L&S for up to four months, to support the transfer of assets.
During this time, Speedy’s UAE-based employees will be on-boarded by ADNOC L&S at its Mussafah offshore logistics base. Speedy currently has close to 600 employees within the UAE.
Captain Abdulkareem Al Masabi, CEO, ADNOC Logistics and Services said, “Speedy has been an efficient and reliable equipment and manpower services specialist for several years, and their assets and skilled personnel in the region are valuable as we look to expand our offshore logistics operations.
“We already have a sizeable offshore logistics base in Mussafah, the largest in the region, from which we provide offshore logistics solutions to nine locations, including six artificial islands. The assets we are acquiring will strengthen the integrated logistics services that we provide and deepen our offering within oil and gas logistics”.
ADNOC L&S already provides offshore material handling services to ADNOC Offshore, which covers nine offshore locations including six artificial islands and three natural islands within the UAE.
ADNOC L&S, which is currently the largest integrated maritime logistics and shipping company in the GCC, and owner and operator of the largest shipping fleet in the UAE, is also pursuing a major fleet expansion program.
Within the last 12 months, it has acquired 16 deep-sea vessels, including six Very Large Crude Carriers (VLCC), adding 12 million barrels of crude cargo capacity.
The company expects to continue expanding its fleet capacity in line with the commitment to increase its oil and gas output.
According to the ADNOC, the company currently provides integrated logistics solutions from its four bases in the UAE and the synergy between Speedy’s assets and ADNOC L&S’ logistics expertise is expected to result in greater efficiencies in a push to position it as a leader in integrated logistics for the oil and gas sector.