ADNOC L&S helps deliver energy to the world

ADNOC L&S helps deliver energy to the world

ABU DHABI, 25th April, 2023 (WAM) -- Abu Dhabi and the UAE has a long and proud tradition of maritime trade, capitalising on the nation’s strategic location between east and west and proximity to key growth markets in Asia and Africa.

Building on this proud tradition, ADNOC Logistics and Services (ADNOC L&S) is one of the UAE’s maritime success stories. As the maritime and integrated logistics arm of ADNOC, the company provides mission-critical infrastructure for the UAE’s energy industry, delivers critical energy products to more than 100 customers in over 50 countries around the world and is a key enabler of ADNOC’s plans to grow and future-proof its business.

The company has delivered remarkable and transformational growth – multiplying in size since 2016. By owning close to 245 vessels and operating and chartering another approximately 600 vessels a year, ADNOC L&S’ diversified and modern fleet is designed to cater to its customers' logistics and shipping needs on a global scale.

Delivering energy to world

ADNOC L&S was established in 2016 but its heritage dates to the formation of its predecessor ADNATCO in 1975. Today, as the dedicated shipping and maritime logistics arm of ADNOC, ADNOC L&S provides critical and highly specialised services across ADNOC’s entire energy value chain and delivers the UAE’s energy products to the world.

In less than a decade, the company has achieved impressive milestones with operations spanning three key segments: integrated logistics, shipping, and marine services.

Integrated logistics represents the largest segment of the business. It may seem that transporting products and people by sea is a straightforward process, but in fact, it is a complex series of operations, checks and procedures that include warehousing and storage, on-land transportation, lifting and transfers of millions of cubic metres worth of several types of cargoes onto the shipping vessels.

The company’s Mussafah Base in Abu Dhabi is one of the largest energy logistics bases in the region spanning 1.5 million square metres, equivalent in size to approximately 300 football pitches. It owns and operates one of the largest fleets of self-propelled, self-elevated jack-up barges used for offshore drilling and installation operations, along with support vessels that serve ADNOC’s entire offshore production network.

Shipping is ADNOC L&S’ second-largest business segment. The company transports a range of key energy products including natural gas, crude oil and sulfur to customers globally using a fleet of specialised vessels. And finally, the marine services segment provides highly specialised services, including petroleum ports operations, and critical oil spill response support – safeguarding the national waters of the UAE and its marine ecosystems.

Long-term contracts for future growth

Long-term contracts with ADNOC provide a strong base for future growth. The company already has an agreement to offer specialist services at all petroleum ports in Abu Dhabi and has signed a US$2.6 billion contract with ADNOC Offshore to provide integrated logistics services through its new Integrated Logistics Services Platform (ILSP), one of the largest turnkey offshore logistics offerings in the world from its base in Mussafah.

ADNOC L&S is focused on global partnerships and prioritising Environmental, Social and Governance strategies (ESG). Captain Abdulkareem Al Masabi, CEO, ADNOC L&S says, "ADNOC L&S has been bold in pursuing growth opportunities. We have partnered with both strategic local and global players and invested billions in the capabilities that allow us not only to serve our customers for the next 25 years, but also stay ahead in terms of decarbonisation and compliance with international environmental regulations. We are continuously exploring ways to achieve both operational efficiency and better environmental performance to contribute to the well-being of our stakeholders and the wider community.”

ADNOC L&S is committed to the decarbonisation of its operations and reducing its overall environmental impact. In the past six years alone, it has invested or committed to invest approximately US$2 billion in environment-friendly, new-build vessels to support the UAE's 2050 net zero ambition and to exceed the International Maritime Organisation’s decarbonisation targets. ADNOC L&S has used innovation and technology to reduce its carbon intensity of the company’s owned vessels per tonne and so far, has reduced it by more than 20 percent since 2018. The company is also committed to maintaining high levels of HSE performance. In 2022 it received the Green Shipping Award from The Maritime Standard and the Outstanding HSE Performance Award from Lloyd’s Register, in recognition of its commitment to sustainability and decarbonisation efforts.

Strategic importance

ADNOC L&S has displayed strong and resilient top-line growth over the past three years, despite the challenges brought by COVID-19. This is attributed to improved shipping and operational performance, growth in the integrated logistics segment and the acquisition of ZMI Holdings, an Abu Dhabi-based owner and operator of offshore jack-up barges and offshore support vessels, employing over 1700 people across the United Arab Emirates, Saudi Arabia, Qatar and China. Today, ADNOC L&S’ mission-critical energy logistics services to ADNOC, Abu Dhabi and the UAE maintain a continuous flow of energy commodities that are strategically important to the national economy. They also support the ‘Make it in the Emirates’ initiative, stimulate industrial sector growth and create more jobs for UAE nationals.

Captain Al Masabi says, “A strategic commitment to sustainability and innovation plays a crucial role in ADNOC L&S’ ability to serve its customers and communities. Our track record of operational excellence, safety and supporting the environment positions ADNOC L&S to deliver value to stakeholders, and a lasting legacy to the nation for generations to come.”