Adnoc Logistics & Services (L&S), a subsidiary of state-owned giant Abu Dhabi National Oil Company (Adnoc) has acquired United Arab Emirates-based offshore support services player Zakher Marine International (ZMI) in a move aimed at strengthening its presence in the offshore wind and oilfield services sector.

Zakher Marine confirmed the development on Tuesday and said Adnoc L&S “has entered into definitive agreement to acquire ZMI”.

“The transaction is subject to customary regulatory approvals and is expected to close in the fourth quarter 2022,” said ZMI.

The deal with an undisclosed value expands Adnoc L&S' fleet to more than 300 vessels, with the services extending to include critical support assets for offshore operations, and ZMI’s maiden offshore renewables foray in China.

Fleet expansion

On completion of the transaction, Adnoc L&S will add 24 jack-up barges and 38 offshore support vessels from ZMI to its fleet.

The contractor currently owns and operates the world’s largest active fleet of offshore jack-up barges, complemented by a large fleet of offshore support vessels, the company said.

ZMI added that its strategic combination with Adnoc L&S creates a unique platform for the offshore support provider “to accelerate its growth and expand its business footprint in the region and globally, allowing it to capture new revenue opportunities and drive market consolidation”.

“Adnoc L&S will benefit from ZMI’s extensive capabilities, its experience established over nearly four decades, its fit-for-purpose fleet of over 60 vessels, as well as its operational excellence and impeccable HSE record,” it added.

Diversified customer base

The UAE-based services provider has a broad and diversified customer base across the UAE, Saudi Arabia and Qatar, with long-term relationships with several oil and gas giants.

ZMI recently entered the offshore wind farm market in China, providing geographic diversification and an entry point into the renewables market.

Adnoc’s push to acquire the regional oilfield services giant highlights its ambition to expand its presence in the lucrative offshore support and windfarm sectors.

Hassan Abdelkader El Ali, founder and chairman of ZMI, said the strategic transaction supports its growth ambitions as the company works with oil and gas clients, while also accelerating its business to support the transition to net zero.

“We have plans in place to further diversify our portfolio of assets and clients, expanding in China and utilising Adnoc’s breadth and depth to rapidly scale up in areas of high demand,” he said.

Long-standing partner

El Ali added that Adnoc has been a long-standing partner and together the two players will continue to provide a world-class service “across the regional and global offshore oil and gas and renewable markets".

ZMI will continue operating as a standalone entity under Adnoc L&S and will be led by Ali Hassan El Ali as its chief executive.

Goldman Sachs International acted as financial advisor to the deal, while White & Case was the legal counsel to ZMI.

The services player said it employs over 1400 people and is well on track to deliver a record EBITDA run rate of more than $300 million in 2022.

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