ADNOC L&S Acquires Three Ultramax Carriers to Bolster Dry Bulk Fleet
Acquisition means four dry bulk vessels have joined ADNOC’s L&S fleet in 2020 to meet growing customer demand
New dry bulk vessels add 214,000 metric tonnes deadweight capacity for ADNOC L&S
Shipping and integrated logistics a key enabler of ADNOC’s 2030 growth strategy, delivering growth and creating value across its operation
Abu Dhabi, 12 November 2020 – ADNOC Logistics & Services (L&S), the maritime arm of ADNOC, announced today the acquisition of an Ultramax bulk carrier (Al Karama), following the acquisition of two Ultramax carriers earlier this year.
The Al Karama bulk carrier vessel was built in 2019 and has a deadweight of 64,000 metric tonnes. It will immediately be deployed on key ADNOC L&S trading routes, including the transport of sulphur from facilities in Ruwais, Abu Dhabi, to global customers.
The Al Karama joins the Motor Vessel Al Dhafra and Motor Vessel Al Wathba, which were built in 2019 in Japan, as part of the ADNOC L&S Ultramax dry bulk fleet. These vessels play an important role in delivering products to ADNOC customers around the world and, in particular, service the long-term sulphur supply agreement signed between ADNOC and OCP Morocco, one of the world’s largest sulphur importers.
Speaking at this year’s virtual Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), Abdulkareem Al Masabi, Chief Executive Officer of ADNOC L&S said: "The addition of these modern bulk carriers to our fleet is a key milestone in the delivery our growth plans. The vessels will increase ADNOC L&S’ regional presence and will enable allow us to explore more cargo options outside the UAE market.
“As we continue to invest in our shipping fleet to service our global network of customers, we remain focused on delivering a safer and smarter growth strategy in shipping, driving growth opportunities and creating value for ADNOC, Abu Dhabi and the UAE.”
The new Ultramax bulk carriers feature economically efficient engines and smart speed management technology, allowing the vessels to operate at very low engine speeds resulting in a marked decrease in fuel consumption and lower emissions.
The MV Ghantout, a smaller class of bulk carrier with the capacity of 23,000 metric tonnes, has also recently joined the ADNOC L&S fleet. This vessel will be used to transport calcined petcoke from ADNOC’s Ruwais terminal to Jebel Ali and Khalifa Port in the UAE, supporting a long-term supply contract between ADNOC and Emirates Global Aluminum (EGA), which was signed in 2019.
The addition of these four vessels increases ADNOC L&S’s bulk cargo tonnage by 214,000 metric tonnes. The purchases reflect the company’s focus on modernizing its fleet and optimizing its cargo capacity, thereby ensuring that its vessels are at the forefront of technology and sustainable shipping.
The new fleet will enable ADNOC L&S to deliver more backhaul bulk cargoes in the open market, thereby making fewer ballast voyages and delivering greater value from each journey. More broadly, the expansion of ADNOC L&S’ dry bulk fleet also supports ADNOC’s Downstream growth and its move into Trading.
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 to more than 100 global customers.
Its shipping business owns the UAE’s largest diversified shipping fleet with 27 vessels (including LNG, gas, refined products and chemical tankers, bulk carriers, and container vessels) which is expected to grow further in the coming years as ADNOC increases its upstream and downstream production capacity, and enters into Trading.
The company has a global reach of 40 countries in key growth markets and transports crude oil, refined products, dry bulk, and LNG on its own vessels or through chartering.
The Company’s integrated logistics team manages a fleet of 44 vessels, and charters a similar number. This includes 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. ADNOC L&S also operates the Borouge container terminal in Ruwais, which shipped more than 3.5 million metric tonnes of cargo last year.
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, tug boats 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.
ADNOC L&S’ comprehensive range of cost-competitive and integrated shipping and maritime logistics solutions span the entire oil and gas supply chain. The company’s world-class assets are complemented by an integrated service offering that provides single-stop, end-to-end solutions across shipping, marine services, onshore services and offshore logistics, combined with a high In-Country Value, is unique in the UAE.
