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Wednesday, October 4, 2023

Adnoc L&S wins $975m deal to build Lower Zakum Island


Adnoc Logistics and Services, a global leader in energy marine logistics, has won Adnoc Offshore’s $975 million artificial island construction contract.

At least 75% of the total value of the dredging, land reclamation and marine construction contracts for the artificial island ‘G’ of the Lower Zakum offshore oil field will flow back to the UAE economy as part of Adnoc’s domestic value programme, said a statement.

The award is an important milestone in Adnoc Logistics & Services’ (Adnoc L&S) strategy to pursue new growth opportunities.

The Integrated Logistics business unit of Adnoc L&S is an end-to-end, fully integrated energy logistics service provider. The provision of engineering, procurement and construction (EPC) services within the integrated logistics business is a new offering for the company, in line with its announced strategy to achieve significant and sustained growth, including expansion into new verticals, it said.

The EPC market is expected to experience substantial growth in the region in the coming years. The company aims to provide customers with a wider range of services while facilitating the growth of Adnoc’s upstream and downstream businesses, the company said.

It is the first major award for Adnoc L&S following its listing on the Abu Dhabi Securities Exchange (ADX) on 1 June, following the highest global demand for an IPO this year.

Captain Abdulkareem Al Masabi, Chief Executive Officer of Adnoc L&S, said: “Utilizing our project management expertise, end-to-end logistics solutions and strategic partnerships, Adnoc L&S is poised to execute major offshore EPC contracts in support of our client’s ambitious plans Growth plans and value creation for our shareholders. This contract to build Artificial Island ‘G’ reflects our strategy to open up new growth areas and demonstrates the expanding range of services we offer our customers and Adnoc Offshore’s commitment to us as their first choice The trust of our partners.”

The award is part of Lower Zakum’s long-term growth plan to unlock greater value safely and sustainably, while helping meet growing global energy demand. Adnoc Offshore has extensive experience in deploying artificial island concepts for project delivery, delivering significant cost savings and environmental benefits compared to traditional approaches requiring more offshore facilities and infrastructure.

Adnoc L&S has a diversified fleet of 245 vessels and approximately 540 vessels operated and chartered annually, which, together with its 1.5 million square meter logistics base and integrated logistics capabilities in Abu Dhabi, is the largest in the region Shipping and integrated logistics company.

Adnoc L&S is targeting mid-term EBITDA growth in the mid-teens per annum. The growth will be driven by new contract awards, further expansion of the Integrated Logistics Services Platform (ILSP) and optimized redeployment of jack-up barges, the company said. –trade arab news agency


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