Three-in-one: another ADNOC consolidation is on the way
* Abu Dhabi National Tanker Company, Petroleum Services Company, and Abu Dhabi Petroleum Ports Operating Company to be combined
* New company will operate more than 165 vessels
* National Gas and Shipping Co to remain separate
It looks like state-owned Abu Dhabi National Oil Co (ADNOC) is on a consolidation spree. The firm announced on Tuesday (October 18) that it would combine the operations of three of its shipping, marine and services companies into one firm in order to increase efficiency.
This news comes barely two weeks after ADNOC said it was planning to combine the operations of two majority-owned offshore oil firms.
The Abu Dhabi National Tanker Company (ADNATCO), Petroleum Services Company (ESNAAD), and Abu Dhabi Petroleum Ports Operating Company (IRSHAD) will be combined by end of next year.
The yet-to-be-named new company will operate more than 165 vessels, including LNG vessels, bulk carriers, chemical and products tankers, container and container-feeder vessels, as well as modern multi-purpose vessels and support vessels, the oil giant has said.
“By leveraging the experience and assets across the three companies, we aim to deliver an improved and cost-effective service to meet the needs of the ADNOC Group,” Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, said.
Following Al Jaber’s appointment as its chief executive in February, the ADNOC group has seen many changes, including a leadership reshuffle in May.
On October 7, the group announced its plans to combine the operations of Abu Dhabi Marine Operating Co (ADMA-OPCO) and Zakum Development Co (ZADCO) into a single new company, saying the consolidation will create a more profitable upstream business for it and its partners, namely BP, ExxonMobil, Japan Oil Development Company (JODCO) and Total. The integration is forecast to be concluded by early 2018.
Nonetheless, National Gas and Shipping Co (NGSCO), in which ADNOC owns a 70 per cent stake, would remain a separate firm, but that stake would be transferred to the newly merged shipping company in order to maximise synergies, ADNOC has said.