The new vessels would be the first crude carriers to join the ADNOC L&S fleet, adding a total cargo capacity of 12 million barrels
Abu Dhabi National Oil Company (ADNOC) maritime logistics arm ADNOC Logistics & Services (ADNOC L&S) has announced the acquisition of six Very Large Crude Carriers (VLCCs).
ADNOC L&S has already deployed two of the VLCCs into its fleet.
The company has placed an order for three newbuild vessels, to be delivered in 2022 and 2023, and purchased one additional existing vessel, which is expected to join its fleet soon.
The new vessels are said to be the first crude carriers to join the ADNOC L&S fleet, and add a total cargo capacity of 12 million barrels.
ADNOC Logistics and Services CEO Captain Abdulkareem 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.”
ADNOC L&S said that the purchase underlines its continued focus on modernising, growing and diversifying its fleet.
The new VLCCs would enable the company to provide enhanced service to its customers, and also support ADNOC as it expands production and refining capacity with new operations.
Currently, the company has a capacity of over 4 million barrels of oil per day (mbopd), which is expected to be increased to 5mbopd by 2030.
With an ability to carry nearly two million barrels of crude oil, the six vessels, each with a minimum length of 330 meters (1,082ft), will have a 300,000 metric tonnes deadweight.
The newbuild vessels will be equipped with Smart Ship technology.
Currently ADNOC L&S’s fleet consists of 120 owned vessels, which includes deep-sea shipping, offshore support and marine services vessels.
Al Masabi added: “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.”