Abu Dhabi National Oil Company's logistics and services subsidiary Adnoc L&S has bought Zakher Marine International (ZMI), an Abu Dhabi-based company that owns and operates offshore support vessels, to expand its fleet.
Upon completion of the transaction, which is subject to customary regulatory approvals, Adnoc L&S will add 24 jack-up barges and 38 offshore support vessels from ZMI, boosting its fleet size to more than 300 units, the company said on Tuesday. Financial details of the transaction were not provided.
“With the acquisition of ZMI, Adnoc L&S will broaden its services to include critical support assets for offshore operations, including ZMI’s maiden offshore renewables project in China, and extend its regional footprint, creating new opportunities for expansion with an industry-recognised partner,” Adnoc said in a statement.
ZMI is the world’s largest owner and operator of self-propelled jack-up barges and has operations in the UAE, Saudi Arabia, Qatar and China. The group was established in Abu Dhabi in 1984 and has significantly grown its diverse fleet range supporting the regional and global offshore oil and gas and renewable markets.
The company has long-term contracts with top national and international oil companies and EPC operators and has recently entered the offshore wind farm market in China to diversify its customer base, the statement said.
Adnoc L&S has the largest and most diversified fleet in the Middle East, with more than 200 vessels transporting crude oil, refined products, dry bulk, containerised cargo, liquefied petroleum gas and liquefied natural gas to global markets. Last month, it said it had bought three new LNG vessels to expand its fleet to meet the higher demand globally.
The transaction with ZMI "unlocks new revenue streams, market access, and supports growth opportunities for Adnoc L&S in its core energy and offshore logistics segments", Adnoc said.
ZMI will continue operating as a stand-alone entity under Adnoc L&S with Ali Hassan Ali as its chief executive, the statement said.
The development comes as Adnoc plans to significantly increase its investment in hydrocarbons and raise its output capacity to five million barrels per day by 2030.
Last year, Adnoc's board approved plans to spend Dh466 billion ($126.8bn) between 2022 and 2026 on expanding its upstream production capacity and downstream portfolio, as well as its low-carbon fuels business and clean energy ambitions.