ADNOC Logistics & Services Plc (ADNOC L&S) has revealed a remarkable expansion in its Integrated Logistics business segment for 2024, having acquired 20 offshore assets and secured contracts for 19 Jack-Up Barge (JUB) deployments.
In alignment with its expansion strategy, ADNOC L&S has successfully acquired and deployed nine offshore support vessels (OSVs), which include a passenger ferry, crew boats, anchor handling tug supply vessels, platform supply vessels, and multipurpose supply vessels. Furthermore, the company has obtained six new flat top cargo barges from Premier Marine Engineering in Dubai to bolster its Engineering, Procurement and Construction (EPC) projects.
Strengthening accommodation capabilities
Additionally, the acquisition of two accommodation barges, each capable of housing 300 crew members at offshore production sites, further strengthens the company’s offerings.
Robust revenue growth
These investments in the Integrated Logistics business have propelled robust growth in the segment, with revenues for the first nine months of 2024 soaring by 51 percent year-on-year to $1.67 billion (AED6.14 billion). This surge has been fueled by enhanced utilization of JUBs, an expanded fleet, increased transportation volumes, expedited Hail & Ghasha project delivery, and advancements in EPC projects.
Strategic vision for future growth
Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, stated, “Our strategic investments and fleet expansion are enabling substantial regional and international growth in Integrated Logistics, our largest revenue-generating segment. ADNOC L&S is well positioned to build on this solid performance in 2025 as we meet the evolving needs of customers and capitalise on new market opportunities, while delivering sustainable growth and long-term value to our shareholders.”
High demand for Jack-Up barges
In 2024, Jack-up barges emerged as one of the top-performing asset types within the Integrated Logistics segment. Through its subsidiary ZMI Holdings, ADNOC L&S secured contracts of up to one year for deploying 10 JUBs, with an option for a six-month extension. These barges are set to support EPC contracts in the UAE and Saudi Arabia, alongside a five-year contract for the deployment of a JUB in Qatar, which includes a two-year extension option.
Long-term contracts and revenue projections
Moreover, ADNOC L&S has finalized three-year contracts to deploy eight JUBs for operations in the Upper and Lower Zakum fields in the UAE, also with a two-year extension option. The anticipated revenue from these contracts is projected to be between $500 million and $600 million (AED1.8 billion-AED2.2 billion), with options for an additional $300 million to $350 million (AED1.1 billion-AED1.3 billion) if extensions are exercised.
Continued international expansion
In 2024, the company also acquired three additional shallow water JUBs to enhance its capabilities in the UAE and Saudi Arabia. ADNOC L&S continues to broaden its international presence by operating JUBs in the United States and the North Sea, while actively exploring further growth opportunities in these regions.
Overview of the integrated logistics segment
Integrated Logistics stands as the largest operating segment within ADNOC Logistics & Services, encompassing Offshore Contracting, Offshore Services, and Offshore Project activities. Since its IPO in June 2023, this segment has experienced substantial growth through the expansion and internationalization of service offerings to the energy sector.
