ADNOC L&S adds 20 offshore assets in 2024

emirates7 - ADNOC Logistics & Services Plc (ADNOC L&S) announced a significant expansion of its Integrated Logistics business segment in 2024, marked by the acquisition of 20 offshore assets and the securing of hire contracts for 19 Jack-Up Barge (JUB) deployments.

As part of this growth strategy, ADNOC L&S added nine offshore support vessels (OSVs) to its fleet, including a passenger ferry, crew boats, anchor handling tug supply vessels, platform supply vessels, and multipurpose supply vessels. The company also procured six newly built flat-top cargo barges from Premier Marine Engineering in Dubai to support Engineering, Procurement, and Construction (EPC) projects. Additionally, ADNOC L&S acquired two accommodation barges, each with the capacity to house 300 crew members at offshore production sites.

These strategic investments drove robust growth in the Integrated Logistics segment, with revenue for the first nine months of 2024 rising 51% year-on-year to $1.67 billion (AED 6.14 billion). This growth was attributed to better utilization of JUBs, an expanded fleet, increased transported volumes, accelerated progress on the Hail & Ghasha project, and advancements in EPC projects.

Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, highlighted the company’s achievements, stating, “Our investments in fleet expansion and strategic growth have enabled substantial regional and international progress in Integrated Logistics, our largest revenue generator. ADNOC L&S is well-positioned for continued success in 2025, meeting evolving customer needs, capturing new market opportunities, and delivering sustainable growth and long-term value for our shareholders.”

Jack-up barges were the top-performing assets in the Integrated Logistics segment during 2024. Through its subsidiary, ZMI Holdings, ADNOC L&S secured contracts for the deployment of 10 JUBs, each with an initial one-year term and a six-month extension option, supporting EPC projects in the UAE and Saudi Arabia. The company also signed a five-year contract, with a two-year extension option, for deploying a JUB in Qatar.

Additionally, ADNOC L&S secured three-year contracts with two-year extension options to deploy eight JUBs in the UAE’s Upper and Lower Zakum fields. These contracts are expected to generate $500 million to $600 million (AED 1.8 billion–AED 2.2 billion) in revenue, with potential extensions adding $300 million to $350 million (AED 1.1 billion–AED 1.3 billion).

To further enhance its capabilities in the UAE and Saudi Arabia, the company acquired three shallow-water JUBs in 2024. ADNOC L&S also continues to expand internationally, operating JUBs in the United States and the North Sea, with plans to explore additional opportunities in these regions.

As the largest operating segment of ADNOC L&S, Integrated Logistics encompasses Offshore Contracting, Offshore Services, and Offshore Project activities. Since its IPO in June 2023, the segment has achieved remarkable growth by broadening and internationalizing its service offerings to the energy sector.