Adnoc Logistics & Services, a subsidiary of state-owned giant Abu Dhabi National Oil Company (Adnoc) has completed the acquisition of United Arab Emirates-based offshore support services player Zakher Marine International (ZMI), as it eyes global expansion and a wider presence in the offshore wind sector.
The emirati giant confirmed the development in a social media post on Thursday and said Adnoc L&S “has reinforced its position as the region’s largest shipping and integrated logistics company with the successful closure of the ZMI acquisition”.
“This acquisition is the latest example of Adnoc’s ongoing strategic value creation and growth programme, underlining its commitment to investing in local partnerships and creating further value for Abu Dhabi and the UAE,” it stated.
Adnoc L&S chief executive Abdulkareem Al Masabi told local media that the addition of ZMI will help the company expand into global markets.
The deal was first announced in July.
“Just by acquiring ZMI, we have jumped straightaway from being a regional player to a global player,” Al Masabi told The National, a leading UAE-based news daily.
Al Masabi said the company will be able to deliver value-creation services to its customers, which it was unable to cater for in the past.
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.
Following the completion of the deal, Adnoc L&S has added 24 jack-up barges and 38 offshore support vessels from ZMI to its fleet.
It owns and operates the world’s largest active fleet of offshore jack-up barges, complemented by a large fleet of OSVs, the company earlier said.
ZMI believes 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”.
Diversified customer base
ZMI has a broad customer base across the UAE, Saudi Arabia and Qatar, with long-term relationships with several oil and gas giants.
It 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 wind farm sectors.
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.