ADNOC Logistics & Services (ADNOC L&S), the shipping and maritime logistics arm of Abu Dhabi National Oil Company (ADNOC) has acquired six Very Large Crude Carriers (VLCCs).
There are currently two VLCCs deployed in the company’s fleet. ADNOC L&S has placed an order for three optional new-build vessels to be delivered in 2022 and 2023 and has acquired an additional existing vessel to join 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 owns and operates the largest shipping fleet in the UAE is undertaking a major fleet expansion program. This will allow the company to provide its global customers with better service, while also helping ADNOC as it increases its production and refining capacity and expands its new trading operations.
Two new trading ventures have been set up by the company: ADNOC Trading which focuses on crude oil and started derivatives in September 2020; and ADNOC Global Trading( AGT), a joint venture between ENI and OMV that concentrating on the trading of refined products and began operations in December 2020.
Mr. Captain Abdulkareem Al Masabi, Chief Executive Officer, ADNOC Logistics and Services, remarked “The acquisition of these six VLCCs is one of our most significant growth steps to-date. This strategic move allows us to offer new services to our customers and supports ADNOC and its Trading entities to access new global energy markets, while also delivering incremental value and a new revenue stream to our business”.
ADNOC L&S ‘s recent acquisitions reflect the company’s continued focus on modernizing, growing, and diversifying its fleet. The newly build vessels will be equipped with industry-leading Smart Ship technology, designed to the ADNOC specification. Although specialist manufacturing facilities for this type of VLCC are available in a limited number of countries, primarily in Asia, ADNOC L&S has obtained higher levels of In-Country Value (ICV) for this significant contract by ensuring that project management and design work is carried out in the UAE for new vessels. Besides, a team of young UAE nationals from ADNOC L&S will work closely with the design and project management teams to improve their skills and experience in the design, construction, and future maintenance of VLCC vessels.