UAE’s newly listed ADNOC Logistics & Services has bagged a $975 million EPC (engineering, procurement, construction) contract to build an artificial island. The project was awarded by ADNOC Offshore.
The award is part of the Lower Zakum’s ‘long-term development plan’, aimed at unlocking ‘greater value while helping to meet the increasing global energy demand’.
ADNOC Offshore has extensive experience in bringing into play the artificial island concept for project delivery, and ‘resulting in significant cost savings and environmental benefits compared to conventional approaches that require more offshore installations and infrastructure’.
For ADNOC L&S – whose IPO hit a few high notes on the subscription side – the contract takes it into ‘new growth opportunities’.
“Capitalizing on our project management expertise, end-to-end logistics solutions, and strategic partnerships, ADNOC L&S is primed to execute major offshore EPC contracts that support our customers’ ambitious growth plans and deliver value to our shareholders,” said Capt. Abdulkareem Al Masabi, CEO of ADNOC L&S.
The new Lower Zakum award sets up the perfect foundation for ADNOC L&S – more known for its shipping fleet – to emerge as a serious contender in the lucrative EPC space.
ADNOC L&S is targeting an average annual EBITDA growth in the ‘low teens over the medium term’. The growth will come from new contract awards, further expansion of the integrated logistics services platform, and optimized redeployment of jack-up barges.
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