The services to be offered by the JV include integrated offshore logistics, offshore support vessels, and subsea solutions in the initial stage and later it will provide container feedering, roll-on/roll-off (ro-ro) and crude oil transportation in the Caspian Sea and the Black Sea
Abu Dhabi Ports Group signs agreement with Kazmortransflot to form JV. (Credit: AD Ports Group)
Abu Dhabi Ports Group has forged a shareholder agreement with KMTF (Kazmortransflot), a wholly-owned subsidiary of Kazakhstan’s national oil company KazMunayGas, to form a joint venture (JV) to deliver offshore and shipping services for energy companies in the Caspian Sea.
AD Ports Group will hold a 51% stake in the new JV while the remaining 49% interest will be owned by Kazmortransflot.
The scope of services to be offered by the JV includes integrated offshore logistics, offshore support vessels, and subsea solutions in the initial stage.
The JV is expected to provide container feedering, roll-on/roll-off (ro-ro) and crude oil transportation in the Caspian Sea and the Black Sea.
According to AD Ports Group, the JV will submit bids for several identified projects with estimated maritime contract values of over $780m.
AD Ports Group chairman H.E. Falah Mohammed Al Ahbabi said: “Under the direction of our wise leadership, AD Ports Group is looking to deploy our expertise in support of agreements that boost trade and economic relations with brotherly nations.
“This new joint venture with KMTF opens the door to enormous opportunities in the Caspian Sea, which plays a key role in global energy production, and is serviced by prominent players within the energy sector.
“By providing maritime services in this key market, AD Ports Group has reached a new level of internationalisation and development.”
Through the collaboration, the companies intend to combine AD Ports Group’s global maritime services portfolio and shallow water offshore expertise with the strong fleet and local knowledge of Kazmortransflot to generate new opportunities in the region.
Besides, the companies have signed a seven-year vessel pooling agreement.
Under the terms of the agreement, Kazmortransflot’s fleet will work alongside Safeen Group’s existing AFRAMAX tanker and is expected to acquire additional vessels shortly.
The companies are anticipated to jointly carry eight to ten million tonnes of crude per year in the medium term.
KazMunayGas chairman Mirzagaliyev Magzum said: “This is an alliance of two world-class companies who complement each other’s strengths and understanding of the market.
“As the world looks for reliable energy sources in challenging conditions, we will be able to provide a full portfolio of services supported by a modern fleet and teams of experts combining local knowledge and global experience.
“Companies operating in the Caspian Sea oil fields are looking for reliable partners and a broad range of value-added services. Working together, KMTF and AD Ports Group will provide the ideal solution.”