Abu Dhabi’s Adnoc Logistics & Services (Adnoc L&S) has boosted its VLCC fleet to six vessels split between newbuildings and secondhand purchases.

Adnoc L&S, the shipping and maritime logistics arm of Abu Dhabi National Oil Co (Adnoc), said two of the VLCCs have already been deployed into the company’s fleet and a third “purchased this week” will be joining them shortly.

TradeWinds reported that the company snapped up Hunter Group's 300,000-dwt Hunter Atla (built 2019) for $84.5m in addition to two sistership acquired last year.

UAE expertise

Adnoc L&S has also ordered three newbuildings at Daewoo Shipbuilding & Marine Engineering for delivery in 2022 and 2023, and has optional slots.

The company said the VLCC newbuildings will be built to Adnoc’s specifications, with project management and design work on the vessels undertaken in the United Arab Emirates.

“A team of young UAE nationals from Adnoc L&S will work closely with the design and project-management teams to enhance their knowledge and experience in the design, construction and future maintenance of VLCC vessels,” the company said.

“These vessels are the first crude carriers to join the Adnoc L&S fleet, adding a total cargo capacity of 12 million barrels."

Adnoc L&S said it is pursuing a major fleet-expansion programme.

It said this will help it support Adnoc as it expands its production and refining capacity, and grows its new trading operations.

Trading double

The parent outfit has established two new ventures.

Adnoc Trading, which was set up in September 2020, is focused on crude oil and started derivatives trading.

In December, Adnoc Global Trading (AGT) — a joint venture with ENI and OMV — was launched to focus on the trading of refined products.

Adnoc L&S chief executive Captain Abdulkareem Al Masabi said: “The acquisition of these six VLCCs is one of our most significant growth steps to date.

“This strategic move allows us to offer new services to our customers and supports Adnoc and its trading entities to access new global energy markets, while also delivering incremental value and a new revenue stream to our business.”

Competitive prices

“Given recent market conditions, we were able to purchase both existing and newbuild vessels at competitive prices," he said.

"Owning these vessels will deliver cost efficiencies for our business, as opposed to chartering vessels, while also enabling us to provide a more reliable service to customers.”

Adnoc L&S claims to be the largest, fully integrated logistics and shipping company in the region with a fleet of 120 owned vessels including deepsea shipping, offshore support and marine services vessels.

The company said it is focused on modernising, growing and diversifying its fleet, adding 16 deepsea vessels in 2020.