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ADNOC Logistics and Services Continues Strategic Expansion with Acquisition of Two Additional VLCCs

Fleet expansion enables greater value retention within ADNOC Group as Murban Crude Futures starts trading

Capacity building supports ADNOC Group’s commitment to boost crude oil production capacity by 25% over next decade

8 VLCCs now announced in 2021 increasing crude capacity by 16 million barrels

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Abu Dhabi, UAE – April 13, 2021: ADNOC Logistics & Services (ADNOC L&S), the shipping and maritime logistics arm of Abu Dhabi National Oil Company (ADNOC), today announced the acquisition of two additional Very Large Crude Carriers (VLCC), bringing the total number of VLCCs added to its fleet in 2021 to eight. 

The VLCC fleet expansion plays a significant role in supporting ICE Murban Futures, which is expected to boost trading of the UAE’s flagship Murban crude oil, enabling it to reach new customers and markets around the globe. The launch of Murban Futures contracts will also allow ADNOC L&S to further improve its vessel capacity utilization in the crude oil sector. 

The growth of ADNOC L&S’s VLCC fleet supports ADNOC Group’s commitment to increase its crude oil production capacity by 25% to 5 million barrels per day (mmbpd) by 2030. 

The new acquisitions include a new-build VLCC, equipped with dual-fuel technology, which is expected to be delivered in Q1 2023, and an existing vessel that is scheduled to join the fleet in Q2 2021. These latest acquisitions mean that ADNOC L&S has now added a total crude oil cargo capacity of 16 million barrels this year. 

Captain Abdulkareem Al Masabi, CEO, ADNOC Logistics and Services said, “The acquisition of these VLCCs further consolidates our highly competitive offering, which covers the full spectrum of the oil and gas value chain. Following our strategic vessel acquisitions in 2020-2021, and combined with our integrated logistics and marine solutions, we are confident that our customers will gain a significant edge in terms of time and cost savings for their upstream and downstream operations, including ADNOC Group entities.” 

ADNOC L&S, which is the largest integrated maritime logistics and shipping company in the GCC, and owner and operator of the largest shipping fleet in the UAE, has been pursuing a smart fleet expansion program, driven by increased demand from its affiliates, in particular ADNOC Trading and ADNOC Global Trading, and favorable asset prices for crude vessels. In 2020, ADNOC L&S grew its fleet with 16 deep-sea vessel acquisitions. As a result of the additional fleet capacity, ADNOC L&S can further improve cost efficiencies while providing a comprehensive service to its customers. 

The company is developing one of the most sustainable, modern crude fleets in the world. The vessels added are a blended mix of new orders (four new builds on order) and modern existing vessels (four recently acquired). 

The latest acquired vessels have a length of 336 meters with a deadweight of 300,000 metric tonnes. The existing vessel is equipped with a scrubber, which is an exhaust gas cleaning system that removes sulphur oxides from the ship’s engine, improving its environmental performance.

The new build vessel, made by Daewoo (South Korea), is fitted with a propulsion dual-fuel engine, providing a more environment-friendly operation. 

The VLCC adds to ADNOC L&S’ existing fleet of 140 owned vessels and 100 chartered vessels, which includes deep-sea shipping, offshore support and marine services vessels. The ADNOC L&S international trading fleet transports crude oil, refined products, dry bulk, containerized cargo, LPG and LNG on its owned and chartered vessels, supporting ADNOC’s operations locally and facilitating the shipment of commodities to global markets. 
 

Release Details

April 13, 2021
Abu Dhabi

About ADNOC

ADNOC is a leading diversified energy and petrochemicals group. Headquartered in Abu Dhabi, ADNOC is a primary catalyst for the UAE’s growth and diversification. To find out more, visit www.adnoc.ae

For media inquiries please contact:

Philip Robinson
Manager, ADNOC External Relations
+971 (0) 50 504 4934
probinson@adnoc.ae

About ADNOC Logistics & Services

As the maritime logistics arm of ADNOC Group, ADNOC L&S supports the entire oil and gas supply chain in the UAE through three major business segments: shipping, integrated logistics and marine services. It provides safe, reliable and cost-efficient maritime and logistics solutions to ADNOC Group companies and more than 100 global customers.

Its shipping business owns the UAE’s largest diversified shipping fleet with 44 vessels (including LNG, gas, refined products and chemical tankers, bulk carriers, and container vessels). 
 
The Company’s integrated logistics team manages a fleet of 120 vessels (owned and chartered tonnage) including anchor handling tug vessels, platform supply vessels, safety standby vessels, landing craft and crew boats. ADNOC L&S operates logistics bases in Ruwais, Fujairah and Mussafah with Mussafah operating as the largest integrated logistics base in the region. The company’s marine passenger terminal transports 130,000 passengers every year from Mina Zayed Port. ADNOC L&S also operates the Borouge container terminal in Ruwais.

In marine services, ADNOC L&S offers end-to-end solutions in petroleum port operations, diving services, and oil spill response. The company owns and manages a marine services fleet of 46 vessels, including diving support, pilot boats, tugboats and maintenance vessels. It provides diving support services for the offshore industry and manages the largest oil spill response inventory in the UAE, distributed between four response bases across the UAE and offshore.