ADNOC Logistics & Services (ADNOC L&S), the shipping and maritime logistics arm of Abu Dhabi National Oil Company (ADNOC), has been awarded a $975 million worth artificial island construction contract by ADNOC Offshore, the largest offshore oil and gas producer in the UAE.
This award is a significant milestone in ADNOC L&S’ strategy to pursue new growth opportunities. ADNOC L&S’ Integrated Logistics business unit is an end-to-end, fully integrated energy logistics services provider.
According to the statement, “As part of ADNOC’s In-Country Value program, at least 75 percent of the total contract value for dredging, land reclamation and marine construction of an artificial island “G” for the Lower Zakum offshore field, will flow back into the UAE economy.”
“Capitalizing on our project management expertise, end-to-end logistics solutions, and strategic partnerships, ADNOC L&S is primed to execute major offshore EPC contracts that support our customers’ ambitious growth plans and deliver value to our shareholders. This contract award for the construction of artificial island ‘G’ exemplifies our strategy to tap into new growth areas, showcasing the expanding range of services we offer to our customers and the trust that ADNOC Offshore has placed in us as their partner of choice.”
This is the first major award for ADNOC L&S after it was listed on the Abu Dhabi Securities Exchange (ADX) on 1 June 2023 following the highest demand globally for an initial public offering (IPO) this year. The company aims to offer a broader range of services to its customers while facilitating the growth of ADNOC’s upstream and downstream operations.
Further, the Award is part of Lower Zakum’s Long-Term Development Plan, aiming to safely and sustainably unlock greater value while helping to meet the increasing global energy demand.
ADNOC Offshore has extensive experience in deploying the artificial island concept for project delivery, resulting in significant cost savings and environmental benefits compared to conventional approaches that require more offshore installations and infrastructure.