ADNOC Logistics and Services (ADNOC L&S) has been awarded a $975 million artificial island construction contract by ADNOC Offshore. The project, part of ADNOC’s In-Country Value program, will see at least 75% of the total contract value flow back into the UAE economy. This is the first major award for ADNOC L&S since it was listed on the Abu Dhabi Securities Exchange (ADX) on 1 June 2023 following a highly successful IPO.
Read more: ADNOC Logistics & Services to offer over a billion shares in IPO
The company aims to offer a broader range of services to its customers and expand into new verticals, including Engineering, Procurement, and Construction (EPC) services in the integrated logistics business.
The EPC market is expected to experience substantial growth in the region, and the award for the construction of an artificial island “G” exemplifies ADNOC L&S’s strategy to tap into new growth areas.
The project is part of Lower Zakum’s Long-Term Development Plan, aimed at unlocking greater value and meeting the increasing global energy demand sustainably.
With a diverse fleet of 245 vessels and integrated logistics capabilities, ADNOC L&S is the region’s largest shipping and integrated logistics company.
Moreover, the company targets an average annual EBITDA growth over the medium term, driven by new contract awards, expansion of its Integrated Logistics Services Platform, and optimized redeployment of jack-up barges.
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