ADNOC L&S rakes in $1.17 bln in new deals

ADNOC L&S rakes in $1.17 billion in new deals

UAE’s ADNOC Logistics & Services (ADNOC L&S), the shipping and maritime logistics arm of the Abu Dhabi National Oil Company (ADNOC), has been awarded a contract totalling $1.7 billion (AED 4.3 billion) by ADNOC Offshore for jack-up barges to support production capacity growth.

Illustration; Source: ADNOC

ADNOC announced the deal for the hire of 13 self-propelled jack-up barges on Thursday. This is expected to drive offshore operational efficiencies and support the expansion of its crude oil production capacity to five million barrels per day (mmbpd) by 2030.

The company explains that these 13 self-propelled jack-up barges are multi-purpose assets that enable rigless operations and maintenance with single-point responsibility provided by ADNOC L&S, “enabling enhanced efficiencies.” The barges – equipped to support a wide scope of operations, including project work, maintenance and accommodation – will be deployed across ADNOC’s offshore fields.

Moreover, the self-propelled jack-up barges, which will be utilised for rigless well intervention and pre- and post-drilling operations, as well as for topside maintenance and integrity restoration activities at ADNOC’s offshore assets, will be hired along with manpower and equipment.

Therefore, all requirements have been unified in line with ADNOC’s approach to centralising procurement and operational logistics management, providing ADNOC Offshore and its strategic partners with operational flexibility while enabling cost efficiencies and single-point responsibility by ADNOC L&S.

Commenting on the contract, Captain Abdulkareem Al Masabi, ADNOC Logistics & Services CEO, stated: “We are extremely proud to continue the decades-long relationship between ADNOC Offshore and ADNOC Logistics & Services. We are committed to continuing to seize growth opportunities and deliver more value to ADNOC and this announcement is another milestone in that journey.

“These vessels represent an important opportunity for growth and diversification for ADNOC L&S and will be a critical enabler of ADNOC Offshore’s growth.”

According to ADNOC, this five-year contract “underpins the world-class capabilities within ADNOC’s group companies,” and over 80 per cent of the award value will flow back into the UAE’s economy under ADNOC’s In-Country Value (ICV) programme, supporting local economic growth and diversification.

Ahmad Saqer Al Suwaidi, ADNOC Offshore CEO, remarked: “Critically, the award enables very high ICV, which can stimulate new business opportunities to support the growth and diversification of UAE’s economy in line with the directives of our wise leadership.”

When it comes to ADNOC L&S’ latest activities, it is worth noting that the UAE firm announced the acquisition of Zakher Marine International in late July 2022, which is expected to bolster its position as the region’s “largest shipping and integrated logistics company.”

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Upon the completion of this acquisition, ADNOC L&S will gain 24 jack-up barges and 38 offshore support vessels from ZMI, which means that its full fleet size will entail more than 300 units.