ADNOC L&S increases fleet size with new VLCC acquisitions
ADNOC Logistics & Services (ADNOC L&S), the shipping and maritime logistics arm of Abu Dhabi National Oil Company (ADNOC), 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 percent 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 of ADNOC L&S, 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 programme, 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 metres 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.