Abu Dhabi – Abu Dhabi National Oil Company (ADNOC) announced on Tuesday its intention to consolidate the operations of three of its shipping, marine and services companies to create a single world-class entity.
The merge will include Abu Dhabi National Tanker Company, ADNATCO, Petroleum Services Company, ESNAAD, and Abu Dhabi Petroleum Ports Operating Company, IRSHAD, for efficiency and resources and asset optimization across their various operations.
The merge is expected to be completed by the end of 2017.
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,” added Jaber.
Based on information released on Tuesday, the company will enjoy a legacy of over 40 years of international shipping experience, marine and port management, oil field services and logistics, across the oil and gas sector. It will provide global seaborne transportation and storage services related to petroleum products and other shipping segments.
The new company 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 terminal maintenance services, high speed craft operations, and port and container yard operations.
The new company would operate over 165 vessels, including liquefied natural gas and bulk carriers, chemicals and products tankers, and container-feeder vessels.
ADNOC owns a 70% stake at the National Gas and Shipping Company (NGSCO) which will remain a separate company. ADNOC intends to transfer its shareholding to the new company, and integrate its operations to maximize potential synergies.
ADNOC was established in 1971 to operate in all areas of the oil and gas industry in Abu Dhabi, United Arab Emirates (UAE). It is governed by the Supreme Petroleum Council, which is chaired by Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi.