ADNOC to consolidate entities into one mega firm
ADNOC has announced its intention to consolidate the operations of three of its shipping, marine and services companies to create a single maritime entity.
The Abu Dhabi National Tanker Company (ADNATCO), Petroleum Services Company (ESNAAD), and Abu Dhabi Petroleum Ports Operating Company (IRSHAD) will be integrated to drive efficiency, optimise resources and assets across their various operations and to maximise value.
Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, said: “This consolidation is aligned with our long-term vision and the core pillars of our business strategy, focused on efficiency, performance, profitability and people.
“By leveraging the experience and assets across the three companies, we aim to deliver an improved and cost-effective service to meet the needs of the ADNOC Group. The consolidation will capture synergies, generate savings and ensure value creation. Upon completion of the integration, the new company will be uniquely positioned to further extend its services to customers worldwide.”
The consolidated company will provide global seaborne transportation and storage services related to petroleum products and other shipping segments. It will also offer a range of marine, ports and closely related oilfield and logistical services, including petroleum ports operation, pilotage services, supervision of crude transfer operations, single point mooring (SPM) terminal maintenance services, high speed craft operations, and port and container yard operations.
The consolidated company will operate over 165 LNG vessels, bulk carriers, chemical and products tankers, container and container-feeder vessels, as well as modern multi-purpose vessels and support vessels.
In the longer term, the consolidated company will enjoy a competitive advantage based on its ability to deliver high quality, integrated cost-effective services across the hydrocarbon value chain.
Work on consolidating the operating companies into a single marine and services company is underway under the guidance of an ADNOC-appointed steering committee. The integration is expected to complete by the end of 2017.
The National Gas and Shipping Company (NGSCO), in which ADNOC owns a 70% stake, will remain a separate company. ADNOC intends, however, to transfer its NGSCO shareholding to the new company, and integrate its operations to maximise potential synergies.