UAE’s ADNOC Logistics & Services (ADNOC L&S), the shipping and maritime logistics arm of the Abu Dhabi National Oil Company (ADNOC), is buying Zakher Marine International (ZMI), an Abu Dhabi-based owner and operator of offshore support vessels and self-propelled jack-up barges.
While announcing the acquisition of Zakher Marine International on Tuesday, ADNOC said that the acquisition would bolster ADNOC L&S’ position as the region’s “largest shipping and integrated logistics company.”
No financial details of the transaction have been disclosed, however, the UAE-based giant did confirm that this acquisition will unlock new revenue streams, and market access, while supporting growth opportunities for ADNOC L&S in its core energy and offshore logistics segments.
ADNOC says that ZMI is “the world’s largest owner and operator of self-propelled jack-up barges and a leading provider of offshore support vessels in the GCC region” with operations across the UAE , KSA , Qatar and China .
Once the acquisition has been completed – subject to customary regulatory approvals – ADNOC L&S will add 24 jack-up barges and 38 offshore support vessels from ZMI, growing its total fleet size to more than 300 units .
Since its establishment in Abu Dhabi in 1984, ZMI has significantly grown its “diverse fleet range, expanded into various geographies” and provides a service offering across the regional and global offshore oil and gas and renewable markets. The company has long-term contracts with a customer base consisting primarily of NOCs, IOCs and EPC operators and has recently entered the offshore wind farm (OWF) market in China, “diversifying its customer base and end-market exposure.”
With this acquisition, ADNOC L&S is expected to broaden its services to include “critical support assets” for offshore operations, including ZMI’s maiden offshore renewables project in China , and extend its regional footprint, creating new opportunities for expansion with an “industry-recognized” partner.
On the other hand, Zakher Marine International will benefit from access to new opportunities provided as a result of ADNOC’s “ambitious” growth strategy, allowing the UAE-based vessel owner and operator to grow and expand its existing business footprint.
Moreover, ADNOC reveals that ZMI will continue operating as a standalone entity under ADNOC L&S, led by Ali Hassan El Ali as CEO.
When it comes to ADNOC L&S’ latest activities, it is worth noting that the UAE firm earlier this month hired Unique Group for exhaust gas scrubber systems retrofit on three of its vessels.
This came a little over a month after ADNOC’s shipping and maritime logistics unit ordered five liquefied natural gas (LNG) carriers from Jiangnan Shipyard. These vessels will have a capacity of 175,000 cbm, boosting the company’s ability to respond to the growing global demand for LNG.