Adnoc Logistics & Services, a subsidiary of Adnoc, unveiled its global integrated logistics service platform and said it has signed a $2.6 billion contract with Adnoc Offshore to provide logistics services.

The five-year agreement has an option to be extended for another five years, at which point more than 80 percent of the contract value will flow back into the UAE economy through Adnoc's Domestic Value (ICV) scheme, the company said in a statement. The agreement includes the provision of port services, warehouse operations, heavy lifting, material handling and transportation, rig and barge movement, marine terminal operations and waste management services.

Abdulkareem Al Masabi, Chief Executive Officer of AdnocL&S, said: “We are delighted to extend our long-standing, decades-long partnership with Adnoc Offshore as we launch ILSP and continue to revolutionize offshore oil and gas logistics. ILSP is a unique product that centralizes all logistics needs of our customers through a single interface, optimizing efficiency and reducing logistics costs. ILSP is one of the largest turnkey offshore logistics offerings in the world and will enable AdnocL&S to coordinate the end-to-end management of logistics and ocean freight operations from its base in Mussafah, Abu Dhabi. The platform was created as part of the company's commitment to support the continued growth of the region's energy industry.

With one system to manage all logistics needs, ILSP can reduce project logistics costs, Adnoc said, with clients being invoiced on a cost-per-ton basis, moving away from the standard asset leasing model. Tayba Al Hashemi, Chief Executive Officer of Adnoc Offshore, said: "The partnership will improve our operational efficiency as we continue to strengthen Adnoc's position as a low-cost, low-carbon-intensity energy producer.

Adnoc L&S is undertaking a global expansion plan to provide a wider range of services to its clients while supporting and facilitating the growth of Adnoc's upstream and downstream businesses. The company has the most diverse fleet in the Middle East, owning 245 vessels and managing more than 600 vessels annually. Mr. Al Masabi said its fleet and 1.5 million square meters of integrated logistics base make the company a global leader in maritime logistics. The deal follows Adnoc Offshore awarding a $1.17 billion contract to Adnoc L&S to boost its offshore production capacity. The agreement signed in August 2022 includes the lease of 13 self-propelled jack-up barges for Adnoc's offshore oil fields to improve the efficiency of its offshore operations and support the expansion of its oil production capacity, the company said at the time.

In July 2022, AdnocL&S acquired Zakher Marine International, an Abu Dhabi-based company that owns and operates offshore support vessels, to expand its fleet, and in June, the company purchased three new LNG vessels to Expand its fleet to meet growing global demand for liquefied natural gas.Editor/XingWentao