ADNOC Shipping Arm Buys 6 Very Large Crude Carriers
ADNOC’s shipping and maritime logistics arm, ADNOC Logistics & Services, has announced the acquisition of six Very Large Crude Carriers (VLCCs).
The company noted that two VLCCs have already been deployed into its fleet and that it has placed an order for three newbuild vessels with options, which it said will be delivered in 2022 and 2023. One additional existing vessel will be joining the company’s fleet shortly, ADNOC added.
The vessels are the first crude carriers to join the ADNOC Logistics & Services fleet, adding a total cargo capacity of 12 million barrels. The establishment of a new VLCC fleet comes as ADNOC progresses its plans to grow its oil production capacity, the company highlighted.
“The acquisition of these six VLCCs is one of our most significant growth steps to date,” Abdulkareem Al Masabi, the chief executive officer of ADNOC Logistics and Services, said in a company statement.
“This strategic move allows us to offer new services to our customers and supports ADNOC and its Trading entities to access new global energy markets, while also delivering incremental value and a new revenue stream to our business,” he added.
“Given recent market conditions, we were able to purchase both existing and newbuild vessels at competitive prices. Owning these vessels will deliver cost efficiencies for our business, as opposed to chartering vessels, while also enabling us to provide a more reliable service to customers,” the ADNOC Logistics and Services CEO went on to state.
ADNOC Logistics & Services describes itself as the largest integrated maritime logistics and shipping company in the GCC and the owner and operator of the largest shipping fleet in the UAE.
The ADNOC Logistics and Services international trading fleet transports crude oil, refined products, dry bulk, containerised cargo, LPG, and LNG on its owned and chartered vessels, supporting ADNOC’s operations locally and facilitating the shipment of commodities to global markets.