Adnoc’s logistics arm signs 25-year deal to service petroleum ports in Abu Dhabi

The new agreement covers Jebel Dhanna (Ruwais), Das Island, Zirku Island and Mubarraz Petroleum Ports

General view of the ADNOC headquarters is seen in Abu Dhabi, United Arab Emirates, December 23, 2018. Photo taken December 23, 2018. REUTERS/Hamad I Mohammed

Adnoc Logistics and Services, the shipping and maritime logistics arm of the Abu Dhabi National Oil Company, said on Sunday it signed a new 25-year agreement to provide “critical marine services” across all petroleum ports in Abu Dhabi on behalf of the Petroleum Ports Authority (PPA).

As part of the deal, Adnoc L&S will provide a range of specialist port services to PPA including pilotage, towage, line handling and other marine services at different petroleum ports in Abu Dhabi including Jebel Dhanna (Ruwais), Das Island, Zirku Island and Mubarraz petroleum ports.

"This new agreement with PPA is a natural evolution of our close collaboration over many years and will allow us to utilise our resources strategically, and drive innovation that will boost performance, enhance efficiency and deliver a seamless end-to-end service at all Abu Dhabi Petroleum Ports,” Captain Abdulkareem Al Masabi, chief executive of Adnoc L&S, said.

Adnoc L&S is the largest, fully integrated logistics and shipping company in the UAE and was formed after the merger of three Adnoc units in 2016. It transports crude oil, refined products, dry bulk and LNG on its own vessels or through chartering.

In 2019, Adnoc L&S vessels travelled 10.3 million nautical miles, shipping more than 20 million metric tonnes of cargo for the Adnoc group. Its shipping business owns and operates the UAE’s largest vessel fleet, which is expected to grow further in the coming years as Adnoc increases its upstream and downstream production capacity, and enters into trading.

“This long term service agreement is the first of its kind in the UAE, and fits perfectly with our focus on sustainable and reliable operations,” Captain Jasim Al Khamiri, the PPA's senior vice president, said.

Adnoc L&S operates logistics bases in Ruwais, Fujairah and Mussafah. At over 1.4 million square meters, its Mussafah unit is the largest integrated logistics base in the region and can accommodate 72 vessels. Last year, it managed 4,500 port calls, handling 910,000 tonnes of customer cargo. The company’s marine passenger terminal transports 130,000 passengers every year from Mina Zayed Port, providing connectivity to offshore facilities in the UAE.

Adnoc L&S also operates the Borouge container terminal in Ruwais, which shipped more than 3.5 million metric tonnes of cargo last year.