Shipping and marine services arms of Adnoc to be merged
The consolidation is expected to bring significant financial and operational benefits and the integration is expected to complete by the end of 2017.
Abu Dhabi National Oil Company, or Adnoc, has plans to merge its three tankers and marine services companies into a mega entity to draw benefits from synergies.
"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 to maximise value," the national oil company said. The integration is expected to complete by the end of 2017.
The National Gas and Shipping Company, in which Adnoc owns a 70 percent 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
The development comes on the heels of an landmark merger, the Adnoc announced two weeks ago when it revealed plans to merge the two major oil producing arms of ADMA-OPCO and Zadco, which will bring greater "efficiencies and synergies" across the multiple offshore concessions and fields, including Zakum, the largest offshore field in the world in terms of reserves.
The consolidation is expected to bring significant financial and operational benefits, a company statement said. The merger of Adnoc's tankers and marine services operations "will be more agile, better able to respond to changing market demands, and be well positioned to take advantage of strategic opportunities for future growth."
The man behind Adnoc's new initiative, Dr Sultan bin 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 minister said.
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 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 will operate over 165 vessels, including 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.