ADNOC Logistics & Services Plc (ADNOC L&S) has significantly expanded its offshore operations in 2024, acquiring 20 new offshore assets and securing contracts for 19 Jack-Up Barge (JUB) deployments. These developments underscore the company’s strategy to strengthen its Integrated Logistics business, which has emerged as its largest revenue-generating segment.
As part of this expansion, ADNOC L&S added nine offshore support vessels (OSVs) to its fleet, including passenger ferries, crew boats, anchor handling tug supply vessels, platform supply vessels, and multipurpose supply vessels. The company also procured six newbuild flat top cargo barges from Premier Marine Engineering in Dubai, aimed at supporting Engineering, Procurement, and Construction (EPC) projects. Further acquisitions included two accommodation barges, each capable of housing 300 crew members at offshore production sites.
These strategic investments contributed to robust growth for ADNOC L&S, with revenue from its Integrated Logistics segment rising by 51% year-on-year for the first nine months of 2024, reaching $1.67 billion (AED 6.14 billion). The increase was driven by expanded fleet capacity, higher transported volumes, and accelerated project timelines, particularly for the Hail & Ghasha project and EPC initiatives.
Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, emphasized the significance of these advancements, stating, “Our strategic investments and fleet expansion are enabling substantial regional and international growth in Integrated Logistics. ADNOC L&S is well-positioned to build on this solid performance in 2025, meeting evolving customer needs and capitalizing on new market opportunities, while delivering sustainable growth and long-term value to our shareholders.”
The performance of JUBs was particularly strong in 2024. Through its subsidiary, ZMI Holdings, ADNOC L&S secured contracts for 10 JUB deployments supporting EPC projects in the UAE and Saudi Arabia, with options for extensions. A separate five-year contract was finalized for a JUB deployment in Qatar, with an additional two-year extension option. Additionally, eight JUBs were contracted for operations in the Upper and Lower Zakum fields in the UAE under three-year agreements, also featuring extension options.
These contracts are expected to generate revenues between $500 million and $600 million (AED 1.8 billion to AED 2.2 billion), with potential extension revenues of $300 million to $350 million (AED 1.1 billion to AED 1.3 billion). ADNOC L&S also expanded its JUB portfolio by acquiring three shallow water JUBs, enhancing its service offerings in key regional markets.
Further bolstering its international presence, ADNOC L&S now operates JUBs in the United States and the North Sea and is actively exploring additional opportunities in these regions. The Integrated Logistics segment, encompassing Offshore Contracting, Services, and Projects, has achieved significant growth since the company’s IPO in June 2023, fueled by an expanding and internationalized service portfolio for the energy sector. – By MENA Newswire News Desk.