ADNOC boosts crude capacity by adding two more VLCCs

ADNOC Logistics & Services (ADNOC L&S), a shipping and maritime logistics arm of ADNOC, has acquired two additional Very Large Crude Carriers (VLCC).

Less than two months ago, ADNOC acquired six VLCCs, adding a total cargo capacity of 12 million barrels to its fleet.

This latest move to acquire two more vessels is bringing the total number of VLCCs added to ADNOC’s fleet in 2021 to eight, supporting its commitment to boost crude oil production capacity by 25 per cent to 5 million barrels per day (mmbpd) by 2030.

ADNOC said on Tuesday that the VLCC fleet expansion plays a significant role in supporting ICE Murban Futures, which is expected to boost trading of the UAE’s flagship Murban crude oil, enabling it to reach new customers and markets around the globe.

The launch of Murban Futures contracts will also allow ADNOC L&S to further improve its vessel capacity utilization in the crude oil sector.

The new acquisitions include a newbuild VLCC, equipped with dual-fuel technology, which is expected to be delivered in 1Q 2023, and an existing vessel that is scheduled to join the fleet in 2Q 2021.

These latest acquisitions mean that ADNOC L&S has now added a total crude oil cargo capacity of 16 million barrels this year.

Captain Abdulkareem Al Masabi, CEO, ADNOC Logistics and Services said, “Following our strategic vessel acquisitions in 2020-2021, and combined with our integrated logistics and marine solutions, we are confident that our customers will gain a significant edge in terms of time and cost savings for their upstream and downstream operations, including ADNOC Group entities”.

ADNOC L&S has been pursuing a smart fleet expansion program and favourable asset prices for crude vessels. In 2020, ADNOC L&S grew its fleet with 16 deep-sea vessel acquisitions.

The vessels added are a blended mix of new orders (four newbuilds on order) and modern existing vessels (four recently acquired).

The latest acquired vessels have a length of 336 meters with a deadweight of 300,000 metric tonnes. The existing vessel is equipped with a scrubber, which is an exhaust gas cleaning system that removes sulphur oxides from the ship’s engine, improving its environmental performance.

The newbuild vessel, made by Daewoo (South Korea), is fitted with a propulsion dual-fuel engine, providing a more environment-friendly operation.