ADNOC L&S Expands Integrated Logistics With Acquisition Of 20 Offshore Assets In 2024

ADNOC Logistics & Services Plc (ADNOC L&S) has reported a substantial expansion in its Integrated Logistics division for 2024. This growth includes the acquisition of 20 offshore assets and securing contracts for 19 Jack-Up Barge (JUB) deployments. The company has also expanded its fleet by acquiring nine offshore support vessels, including various types such as crew boats and multipurpose supply vessels.

The company's strategic investments have significantly boosted the Integrated Logistics segment, leading to a 51% increase in revenue for the first nine months of 2024, reaching $1.67 billion (AED6.14 billion). This growth is attributed to better utilisation of JUBs, an expanded fleet, increased transported volumes, and progress in EPC projects.

As part of its expansion strategy, ADNOC L&S acquired six new flat top cargo barges from Premier Marine Engineering in Dubai to support Engineering, Procurement and Construction (EPC) projects. Additionally, two accommodation barges were purchased, each capable of housing 300 crew members at offshore production sites.

Jack-up barges have been among the top-performing assets within the Integrated Logistics segment in 2024. Through ZMI Holdings, ADNOC L&S secured contracts for deploying 10 JUBs with options for extension. These JUBs are crucial for supporting EPC contracts in the UAE and Saudi Arabia.

Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, stated: "Our strategic investments and fleet expansion are enabling substantial regional and international growth in Integrated Logistics, our largest revenue-generating segment. ADNOC L&S is well positioned to build on this solid performance in 2025 as we meet the evolving needs of customers and capitalise on new market opportunities while delivering sustainable growth and long-term value to our shareholders."

The company continues to expand internationally by operating JUBs in regions like the United States and the North Sea. It is actively exploring further opportunities for growth in these markets.

Contracts Secured Across Regions

This year, ADNOC L&S secured three-year contracts to deploy eight JUBs with a two-year extension option for operations in the Upper and Lower Zakum fields in the UAE. These contracts are expected to generate revenue between $500 million and $600 million (AED1.8 billion-AED2.2 billion), with potential extensions adding another $300 million to $350 million (AED1.1 billion-AED1.3 billion).

The company also acquired three additional shallow water JUBs in 2024 to enhance its services within the UAE and Saudi Arabia markets.

Integrated Logistics remains ADNOC L&S's largest operating segment, encompassing Offshore Contracting, Offshore Services, and Offshore Project activities. Since its IPO in June 2023, this segment has seen significant growth through service expansion and internationalisation within the energy sector.

With inputs from WAM