ADNOC fleet expansion to add 12 million barrels cargo capacity
ADNOC Logistics & Services, the shipping and maritime logistics arm of ADNOC, is expanding its fleet with the acquisition of six Very Large Crude Carriers (VLCCs), which will support the company’s plans to grow its oil production capacity.
Two VLCCs have already been deployed into the company’s fleet, the company said on Thursday.
ADNOC L&S has placed an order for three newbuild vessels with options, which will be delivered in 2022 and 2023, and purchased one additional existing vessel that will be joining its fleet shortly.
These vessels are the first crude carriers to join the ADNOC L&S fleet, adding a total cargo capacity of 12 million barrels.
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 pursuing a major fleet expansion program.
This will support the company as it expands its production and refining capacity and grows its new trading operations.
ADNOC has established two new trading companies: ADNOC Trading, which is focused on crude oil and started derivatives trading in September 2020; and ADNOC Global Trading (AGT), a joint venture with ENI and OMV that focus on trading of refined products and began operations in December 2020.
Captain Abdulkareem Al Masabi, CEO, ADNOC Logistics and Services said, “The acquisition of these six VLCCs is one of our most significant growth steps to-date”.
He added: “Given recent market conditions, we were able to purchase both existing and newbuild vessels at competitive prices. Owning these vessels will deliver cost efficiencies for our business, as opposed to chartering vessels, while also enabling us to provide a more reliable service to customers”.
Built to ADNOC’s specification, the newbuild vessels will be equipped with Smart Ship technology.
Project management and design work for the newbuild vessels is undertaken in the UAE.
The six vessels, each with a minimum length of 330 meters (1,082 feet), will have a 300,000 metric tonnes deadweight and the ability to carry nearly two million barrels of crude oil, adding a total of 12 million barrels capacity to the ADNOC L&S fleet.
Two VLCCs were delivered in December and are already operational on key ADNOC Trading routes and one additional existing vessel purchased this week will join the fleet shortly.
The establishment of a new VLCC fleet comes as the company progresses its plans to grow its oil production capacity. The company currently has a capacity of over 4 mbopd, which it intends to grow to 5 mbopd by 2030.
ADNOC L&S grew its fleet with 16 deep-sea vessels in 2020. In addition to its new VLCC fleet, the company confirmed the order of five newbuild and one recent second-hand Dual Fuel Very Large Gas Carriers (VLGCs) for AW Shipping, its Joint Venture with Wanhua Chemical Group, and recently announced the purchase of four bulk carriers (3 Ultramax and 1 Handysize).
These orders add to ADNOC L&S’s fleet of 120 owned vessels, which includes deep-sea shipping, offshore support and marine services vessels.