Adnoc L&S acquires UAE-based assets of the UK’s Speedy Hire

Adnoc Logistics & Services (Adnoc L&S), the shipping and maritime logistics arm of Abu Dhabi National Oil Company (Adnoc), on Monday announced the acquisition of all of the UAE-based assets of Speedy Hire, the UK’s provider of tools and equipment hire for the oil & gas, construction, and industrial sectors.

Under the terms of the acquisition, Adnoc L&S will take ownership of Speedy’s equipment, stock and other fixed assets relating to its Middle East business, the company said on Monday.

The acquisition adds more than 2,000 pieces of equipment, including cranes, forklifts, firetrucks and other high-value machinery used for offshore and onshore material handling services, to Adnoc L&S’ asset base.

The transaction includes a Transitional Services Agreement with Adnoc L&S for up to four months, to support the transfer of assets. During this time, Speedy’s UAE-based employees will be on-boarded by Adnoc L&S at its Mussafah offshore logistics base. Speedy currently has close to 600 employees within the UAE.

Captain Abdulkareem Al Masabi, CEO of Adnoc Logistics and Services, said, “The expansion plan we are pursuing is in line with Adnoc Group’s 2030 growth strategy. Speedy has been an efficient and reliable equipment and manpower services specialist for several years, and their assets and skilled personnel in the region are valuable as we look to expand our offshore logistics operations.”

He added,”We already have a sizeable offshore logistics base in Mussafah, the largest in the region, from which we provide offshore logistics solutions to nine locations, including six artificial islands. The assets we are acquiring will strengthen the integrated logistics services that we provide and deepen our offering within oil and gas logistics.” The company already provides offshore material handling services to Adnoc Offshore, which covers nine offshore locations including six artificial islands and three natural islands within the UAE. Speedy is one of the leading material handling operators for the oil and gas sector in the Middle East since 2012.

Adnoc L&S, which is currently the largest integrated maritime logistics and shipping company in the GCC, and owner and operator of the largest shipping fleet in the UAE, is also pursuing a major fleet expansion programme.

Within the last 12 months, it has acquired 16 deep-sea vessels, including six Very Large Crude Carriers (VLCC), adding 12 million barrels of crude cargo capacity. The company expects to continue expanding its fleet capacity in line with Adnoc’s commitment to increase its oil and gas output.

The company currently provides integrated logistics solutions from its four bases in the UAE and the synergy between Speedy’s assets and Adnoc L&S’ logistics expertise is expected to result in greater efficiencies for the company’s global clientele and firmly positions it as a leader in integrated logistics for the oil and gas sector.

Adnoc L&S has recently announced the acquisition of six Very Large Crude Carriers (VLCCs). Two VLCCs have already been deployed into the company’s fleet. Adnoc L&S has placed an order for three new-build vessels with options, which will be delivered in 2022 and 2023, and purchased one additional existing vessel that will be joining its fleet shortly. 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, which is currently the largest integrated maritime logistics and shipping company in the GCC, and owner and operator of the largest shipping fleet in the UAE, is pursuing a major fleet expansion program. This will enable the company to provide better service to its global customers, while also supporting Adnoc as it expands its production and refining capacity and grows its new trading operations.

The six vessels, each with a minimum length of 330 meters (1,082 feet), will have a 300,000 metric tonnes deadweight and the ability to carry nearly two million barrels of crude oil, adding a total of 12 million barrels capacity to the Adnoc L&S fleet. Two VLCCs were delivered in December and are already operational on key Adnoc Trading routes and one additional existing vessel purchased this week will join the fleet shortly. The establishment of a new VLCC fleet comes as Adnoc progresses its plans to grow its oil production capacity. The company currently has a capacity of over 4 mbopd, which it intends to grow to 5 mbopd by 2030.

Adnoc L&S grew its fleet with 16 deep-sea vessels in 2020. In addition to its new VLCC fleet, the company confirmed the order of five newbuild and one recent second-hand Dual Fuel Very Large Gas Carriers (VLGCs) for AW Shipping, its Joint Venture with Wanhua Chemical Group, and recently announced the purchase of four bulk carriers (3 Ultramax and 1 Handysize).

WAM