The Abu Dhabi National Oil Company (ADNOC) will combine three of its shipping and ports services units into one as the state oil firm pushes ahead with its reorganisation and consolidation under Sultan Al Jaber, who took over as chief executive earlier this year.
The Abu Dhabi National Tanker Company (Adnatco), the Petroleum Services Company (Esnaad) and the Abu Dhabi Petroleum Ports Operating Company (Irshad), which have a combined workforce of about 4,000, will be integrated into one company – as yet unnamed – by the end of next year, Adnoc said.
Also, the ownership of a fourth company, the National Gas and Shipping Company (NGSCO), in which Adnoc has a 70 per cent stake, will come under the new company, although it will continue to operate separately.
"By leveraging the experience and assets across the three companies, we aim to deliver an improved and cost-effective service to meet the needs of the Adnoc group," Mr Al Jaber said.
Image courtesy: Adnatco
As well as synergies and savings, the new company will be better positioned to bid for business outside the Adnoc group, which accounts for most of its business now.
"Upon completion of the integration, the new company will be uniquely positioned to further extend its services to customers worldwide," Mr Al Jaber said.
A little over 60 per cent of Adnatco’s business comes directly from Adnoc, while more than 90 per cent of both Esnaad and Irshad’s business is Adnoc-dependent. NGSCO, whose other shareholders are BP, Mitsui and Total, derives 100 per cent of its business from Adnoc.
The three chief executives of the companies – Sultan Al Zaabi for Adnatco and NGSCO; Dagher Darwish Al Marar for Esnaad; and Khalifa Mohammed Al Qubaisi for Irshad – will remain in place during the integration process, after which a new chief executive for the combined company will be chosen.
Just under half the workforce of 4,000 is crew for the fleet of 165 tankers, including liquefied natural gas vessels, bulk carriers, chemical and products tankers, container and container-feeder vessels – the number of crew on a vessel is determined by regulation, which limits the scope of consolidation in that area of operations.
The combined company will also have port management, oilfield services and storage aimed at the oil and gas industry and the ability to offer integrated offerings to non-Adnoc companies will help it compete on cost and other factors, the company said.
Apart from other big oil companies, most of which operate their own fleets, competitors in the field include Swire Pacific, Tidewater and Maersk.
After this consolidation, the number of Adnoc’s operating companies – including joint ventures, such as its Borouge petrochemicals company – will have been reduced to 15 from 18.
Earlier this month, Adnoc combined its two major offshore operating companies, the Zakum Development Company (Zadco) and the Abu Dhabi Marine Operating Company (Adma-Opco), and in spring Mr Al Jaber, who is also a minister of state, announced sweeping changes to Adnoc’s leadership, replacing almost all of its top executives, and laid out a plan to make the company more efficient and dynamic, in part to help deal with a lower-oil-price environment.
Source: The National