UAE’s Adnoc Logistics & Services acquires six VLCCs

26 February 2021 (Last Updated February 26th, 2021 12:27)

Adnoc Group’s maritime logistics arm Adnoc Logistics & Services (Adnoc L&S) has acquired six Very Large Crude Carriers (VLCCs), in an attempt to modernise, expand and diversify its fleet.

UAE’s Adnoc Logistics & Services acquires six VLCCs
The newbuild vessels will be built according to Adnoc’s specifications and will feature smart ship technology. Credit: Mohamed Aly / Pixabay.

Adnoc Group’s maritime logistics arm Adnoc Logistics & Services (Adnoc L&S) has acquired six very large crude carriers (VLCCs) in an attempt to modernise, expand, and diversify its fleet.

While two VLCCs have already joined the company’s fleet, Adnoc L&S has ordered three newbuild vessels with options scheduled for delivery in 2022 and 2023.

The company said that it has also purchased an additional existing vessel that will be delivered soon.

Being the first crude carriers to join the company’s fleet, the vessels will increase the total cargo capacity by 12 million barrels.

Adnoc L&S CEO Captain Abdul kareem Al Masabi said: “The acquisition of these six VLCCs is one of our most significant growth steps to date. This strategic move allows us to offer new services to our customers and supports Adnoc and its trading entities to access new global energy markets while also delivering incremental value and a new revenue stream to our business.

“Given recent market conditions, we were able to purchase both existing and newbuild vessels at competitive prices. Owning these vessels will deliver cost efficiencies for our business, as opposed to chartering vessels, while also enabling us to provide a more reliable service to customers. These purchases also further reinforce our position as the largest, fully integrated logistics and shipping company in the region, paving the way for the transportation of greater crude volumes to customers across the world.”

The company noted that the newbuild vessels will be built according to Adnoc’s specifications and will feature smart ship technology.

The project management and design work for the newbuild vessels will take place in the UAE.

Furthermore, a team from Adnoc L&S will work together with the project management and design teams.

With a minimum length of 330m, all six vessels will have the ability to transport approximately two million barrels of crude oil and have a 300,000 metric tonnes of deadweight.

Last year, the company added 16 deep-sea vessels to its fleet.

In addition, Adnoc L&S has confirmed the order of five newbuild and one second-hand dual-fuel very large gas carriers (VLGCs), along with four bulk carriers.

Once delivered, the company’s fleet will feature approximately 120 owned vessels, including deep-sea shipping, offshore support, and marine services vessels.