ADNOC L&S secures $2.6 Bn logistics services deal
ADNOC Logistics & Services has secured a $2.6 billion integrated logistics services contract with its sister company ADNOC Offshore. The deal is part of the ADNOC L&S’ launch of its Integrated Logistics Services Platform (ILSP), one of the largest turnkey offshore logistics offerings. It will enable to company the end-to-end management of logistics and maritime operations at its base in Mussafah, Abu Dhabi.
The agreement with ADNOC Offshore will have a five-year term, with the option of a five-year extension. It includes the provision of port services, warehouse operations, heavy lifting, material handling and shipping, rig and barge moves, marine terminal operations and waste management services.
Abdulkareem Al Masabi, CEO of ADNOC L&S, said, “We are very pleased to extend our decades’ long collaboration with ADNOC Offshore as we unveil our ILSP and continue to revolutionize offshore oil and gas logistics. The ILSP is a unique offering that centralises all logistics requirements for our customers through a single interface, optimising efficiencies and reducing logistics costs.”
Supporting the region’s growing energy sector
ADNOC L&S said it has created the ILSP as part of its support for continued growth of the region’s energy sector. By managing all logistics requirements through one system, ILSP can reduce project logistics costs, with customers being invoiced in a unique, cost-per-ton format, moving away from the standard asset lease model, the company claims.
Tayba Al Hashemi, CEO of ADNOC Offshore, said, “Building on the world-class capabilities and expertise of ADNOC L&S, we’re delighted to work in partnership to enhance the efficiency of our operations, as we continue to strengthen ADNOC’s position as a low-cost, lower-carbon intensity energy producer.”
ADNOC L&S is undertaking a global strategic expansion program, to offer a broader service to its customers while supporting and enabling the growth of ADNOC’s upstream and downstream operations.
The company has a 245 vessels under its ownership, managing over 600 vessels annually and has a 1.5 million square metre integrated logistics base in Mussafah to utilise for the job.