UAE player scopes up $2.6 bln deal while unveiling new turnkey offering to ‘revolutionise offshore oil and gas logistics’
UAE’s ADNOC Logistics & Services (ADNOC L&S), the shipping and maritime logistics arm of the Abu Dhabi National Oil Company (ADNOC), has launched a new turnkey offshore logistics offering for the oil and gas industry and revealed a new deal with ADNOC Offshore, which amounts to $2.6 billion (AED9.5 billion).
ADNOC Logistics & Services made the announcement about the launch of its Integrated Logistics Services Platform (ILSP) on Wednesday, 29 March 2023. The firm describes this as one of the largest turnkey offshore logistics offerings in the world that enables coordinated end-to-end management of logistics and maritime operations at its base in Mussafah, Abu Dhabi.
As part of the launch of the ILSP project, the UAE player confirmed the signing of a $2.6 billion contract with ADNOC Offshore to provide integrated logistics services. The deal, which runs for five years with the option of a five-year extension, entails the provision of port services, warehouse operations, heavy lifting, material handling and shipping, rig and barge moves, marine terminal operations and waste management services.
Commenting on this, Tayba Al Hashemi, CEO of ADNOC Offshore, remarked: “Building on the world-class capabilities and expertise of ADNOC L&S, we’re delighted to work in partnership to enhance the efficiency of our operations, as we continue to strengthen ADNOC’s position as a low-cost, lower-carbon intensity energy producer.”
According to ADNOC L&S, over 80 per cent of the contract value will flow back into the UAE’s economy through In-Country Value (ICV) programme. This deal comes after ADNOC L&S won a contract totalling $1.7 billion (AED 4.3 billion) with ADNOC Offshore in August 2022.
Furthermore, the company created the ILSP as part of its ongoing commitment to support the continued growth of the region’s energy sector. By managing all logistics requirements through one system, the firm claims that ILSP can reduce project logistics costs, with customers being invoiced in a unique, cost-per-ton format, moving away from the standard asset lease model.
Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, outlined: “We are very pleased to extend our decades’ long collaboration with ADNOC Offshore as we unveil our ILSP and continue to revolutionise offshore oil and gas logistics. The ILSP is a unique offering that centralizes all logistics requirements for our customers through a single interface, optimizing efficiencies and reducing logistics costs.
“As we deliver on our ambitious growth strategy, we continue to unlock greater value both for our customers and ADNOC L&S, and reinforce ADNOC L&S’ position as the region’s largest shipping and integrated logistics company and global maritime energy logistics leader.”
Furthermore, ADNOC L&S is undertaking a global strategic expansion programme, to offer a broader service to its customers while supporting and enabling the growth of ADNOC’s upstream and downstream operations. The UAE firm owns 245 vessels and manages over 600 vessels annually. The company believes that its fleet and its 1.5 million square meters integrated logistics base in Mussafah position it as “a global maritime logistics leader.”
Regarding ADNOC L&S’ recent activities, it is worth noting that the UAE player expanded its fleet by completing the acquisition of Zakher Marine International (ZMI). This enabled the firm to enhance its offering to the oil and gas industry.
Thanks to this acquisition, ADNOC L&S added 24 jack-up barges and 38 offshore support vessels to its fleet.