ADNOC Logistics & Services (ADNOC L&S), the shipping and maritime logistics arm of Abu Dhabi National Oil Company (ADNOC) has revealed the acquisition of two additional Very Large Crude Carriers (VLCC), taking the total number of VLCCs added to its fleet in 2021 to eight.
The expansion of the VLCC fleet is essential for ICE Murban Futures, which is expected to enhance trading of the UAE’s flagship Murban crude oil, allowing it to enter new customers and markets around the world.
ADNOC L&S will be able to increase vessel capacity utilization in the crude oil sector owing to the launch of Murban Futures contracts. The expansion of ADNOC L&S’s VLCC fleet also contributes to the ADNOC Group’s goal of increasing crude oil production capacity by 25 percent to 5 million barrels per day (mmbpd) by 2030.
A new-build VLCC with dual-fuel technology is planned to be launched in Q1 2023, while an existing vessel will join the fleet in Q2 2021. ADNOC L&S has now added a total crude oil cargo capacity of 16 million barrels this year as a result of these new acquisitions.
Captain Abdulkareem Al Masabi CEO – ADNOC L&S
“The acquisition of these VLCCs further consolidates our highly competitive offering, which covers the full spectrum of the oil and gas value chain. Following our strategic vessel acquisitions in 2020-2021, and combined with our integrated logistics and marine solutions, we are confident that our customers will gain a significant edge in terms of time and cost savings for their upstream and downstream operations, including ADNOC Group entities.”
Smart fleet expansion
ADNOC L&S, the owner and operator of the UAE’s largest shipping fleet, has been pursuing a smart fleet expansion program, fueled by increased demand from its affiliates, especially ADNOC Trading and ADNOC Global Trading, as well as favorable crude vessel asset prices.
ADNOC L&S expanded its fleet in 2020 by acquiring 16 deep-sea vessels. The company will be able to boost cost efficiencies while delivering a comprehensive service to its customers as a result of the increased fleet capacity.
The company is developing one of the world’s most sustainable and modern crude fleets. The new vessels are a combination of new orders (four new builds are on the way) and modernized existing vessels (four recently acquired).
The latest acquired vessels have a length of 336 meters with a deadweight of 300,000 metric tons. The current vessel is equipped with a scrubber, which is an exhaust gas cleaning device that eliminates sulfur oxides from the ship’s engine, thus enhancing its environmental efficiency.
The new vessel, built by South Korea’s Daewoo, is equipped with a propulsion dual-fuel engine, allowing for more environment-friendly service.
