ADNOC L&S fleet growing to over 300 vessels
UAE’s ADNOC Logistics & Services (ADNOC L&S), the shipping and maritime logistics arm of the Abu Dhabi National Oil Company (ADNOC), is buying Zakher Marine International (ZMI), an Abu Dhabi-based owner and operator of offshore support vessels and self-propelled jack-up barges.
While announcing the acquisition of Zakher Marine International on Tuesday, ADNOC said that the acquisition would bolster ADNOC L&S’ position as the region’s “largest shipping and integrated logistics company.”
No financial details of the transaction have been disclosed, however, the UAE-based giant did confirm that this acquisition will unlock new revenue streams, and market access, while supporting growth opportunities for ADNOC L&S in its core energy and offshore logistics segments.
ADNOC says that ZMI is “the world’s largest owner and operator of self-propelled jack-up barges and a leading provider of offshore support vessels in the GCC region” with operations across the UAE, KSA, Qatar and China.
Once the acquisition has been completed – subject to customary regulatory approvals – ADNOC L&S will add 24 jack-up barges and 38 offshore support vessels from ZMI, growing its total fleet size to more than 300 units.
Since its establishment in Abu Dhabi in 1984, ZMI has significantly grown its “diverse fleet range, expanded into various geographies” and provides a service offering across the regional and global offshore oil and gas and renewable markets.
The company has long-term contracts with a customer base consisting primarily of NOCs, IOCs and EPC operators and has recently entered the offshore wind farm (OWF) market in China, “diversifying its customer base and end-market exposure.”
With this acquisition, ADNOC L&S is expected to broaden its services to include “critical support assets” for offshore operations, including ZMI’s maiden offshore renewables project in China, and extend its regional footprint, creating new opportunities for expansion with an “industry-recognized” partner.
On the other hand, Zakher Marine International will benefit from access to new opportunities provided as a result of ADNOC’s “ambitious” growth strategy, allowing the UAE-based vessel owner and operator to grow and expand its existing business footprint.
Moreover, ADNOC reveals that ZMI will continue operating as a standalone entity under ADNOC L&S, led by Ali Hassan El Ali as CEO.
When it comes to ADNOC L&S’ latest activities, it is worth noting that the UAE firm earlier this month hired Unique Group for exhaust gas scrubber systems retrofit on three of its vessels.
This came a little over a month after ADNOC’s shipping and maritime logistics unit ordered five liquefied natural gas (LNG) carriers from Jiangnan Shipyard. These vessels will have a capacity of 175,000 cbm, boosting the company’s ability to respond to the growing global demand for LNG.