Page 13 - MEOG Week 15 2021

MEOG NEWS IN BRIEF MEOG

ADNOC L&S acquires two operations, including ADNOC Group
COMPANIES savings for their upstream and downstream
Petrofac extends $700mn VLCCs entities.”
ADNOC L&S, which is the largest
facility ADNOC Logistics & Services (ADNOC integrated maritime logistics and shipping
L&S), the shipping and maritime logistics
company in the GCC, and owner and
Petrofac is pleased to announce that it has arm of Abu Dhabi National Oil Company operator of the largest shipping fleet in
extended $700mn of its banking facilities, (ADNOC), today announced the acquisition the UAE, has been pursuing a smart fleet
at its request, with the unanimous support of two additional Very Large Crude Carriers expansion program, driven by increased
of lenders. These extensions comprise a (VLCC), bringing the total number of VLCCs demand from its affiliates, in particular
$610mn extension of its existing revolving added to its fleet in 2021 to eight. ADNOC Trading and ADNOC Global
credit facility to 2 June 2022, with an option to The VLCC fleet expansion plays a Trading, and favorable asset prices for crude
extend for a further six months, and a $90mn significant role in supporting ICE Murban vessels. In 2020, ADNOC L&S grew its fleet
extension of its bilateral term facility with Abu Futures, which is expected to boost trading of with 16 deep-sea vessel acquisitions. As a
Dhabi Commercial Bank to 1 April 2022. the UAE’s flagship Murban crude oil, enabling result of the additional fleet capacity, ADNOC
The increase in margin on these facilities it to reach new customers and markets around L&S can further improve cost efficiencies
reflects market conditions and remains the globe. The launch of Murban Futures while providing a comprehensive service to its
competitive. Existing financial covenants contracts will also allow ADNOC L&S to customers.
remain unchanged and will be tested on a further improve its vessel capacity utilization The company is developing one of the most
quarterly basis. In line with our liquidity in the crude oil sector. sustainable, modern crude fleets in the world.
policy, the extended revolving credit facility The growth of ADNOC L&S’s VLCC fleet The vessels added are a blended mix of new
includes a minimum liquidity covenant of supports ADNOC Group’s commitment to orders (four new builds on order) and modern
$100mn. The revised facilities of $700mn increase its crude oil production capacity by existing vessels (four recently acquired).
represent a reduction in facility size of 25% to 5 million barrels per day (mmbpd) by The latest acquired vessels have a length
$450mn, in line with business requirements 2030. of 336 meters with a deadweight of 300,000
and reflecting the Group’s transition to a The new acquisitions include a new-build metric tonnes. The existing vessel is equipped
capital light business model. Both facilities VLCC, equipped with dual-fuel technology, with a scrubber, which is an exhaust gas
were due to be repaid or prepaid on or before which is expected to be delivered in Q1 2023, cleaning system that removes sulphur
2 June 2021. and an existing vessel that is scheduled to join oxides from the ship’s engine, improving its
The extension of these facilities, together the fleet in Q2 2021. These latest acquisitions environmental performance.
with the issue of £300mn in commercial paper mean that ADNOC L&S has now added a The new build vessel, made by Daewoo
under the Covid Corporate Financing Facility total crude oil cargo capacity of 16 million (South Korea), is fitted with a propulsion
in February 2021, preserve the Group’s strong barrels this year. dual-fuel engine, providing a more
liquidity position which was $1.3 billion at 31 Captain Abdulkareem Al Masabi, CEO, environment-friendly operation.
March (before the reduction in facility size ADNOC Logistics and Services said, The VLCC adds to ADNOC L&S’ existing
announced in this release). “The acquisition of these VLCCs further fleet of 140 owned vessels and 100 chartered
The Group expects to report net debt consolidates our highly competitive offering, vessels, which includes deep-sea shipping,
of $116mn as at 31 December 2020, better which covers the full spectrum of the oil and offshore support and marine services vessels.
than expectations, and continues to target gas value chain. Following our strategic vessel The ADNOC L&S international trading fleet
eliminating net debt as market conditions and acquisitions in 2020-2021, and combined with transports crude oil, refined products, dry
contract awards recover. our integrated logistics and marine solutions, bulk, containerized cargo, LPG and LNG on
PETROFAC we are confident that our customers will gain its owned and chartered vessels, supporting
a significant edge in terms of time and cost ADNOC’s operations locally and facilitating

Week 15 14•April•2021 www. NEWSBASE .com P13