Abu Dhabi: ADNOC Logistics and Services plc, a leading global energy maritime logistics company, has been granted a $975 million contract by ADNOC Offshore for the construction of an artificial island. The project, known as Island “G,” is part of ADNOC’s commitment to its In-Country Value program, with at least 75 percent of the contract’s value flowing back into the UAE economy.
The awarding of this contract marks a significant milestone in ADNOC Logistics & Services’ (ADNOC L&S) strategy to pursue new growth opportunities. ADNOC L&S’s Integrated Logistics business unit serves as an end-to-end energy logistics services provider, and the provision of Engineering, Procurement, and Construction (EPC) services in this sector is a new offering aligned with the company’s expansion plans.
The EPC market in the region is projected to witness substantial growth in the upcoming years, and ADNOC L&S aims to capitalize on this trend by providing a wider range of services to its customers while supporting the growth of ADNOC’s upstream and downstream operations.
This contract is particularly noteworthy as it represents the first major award for ADNOC L&S since it listed on the Abu Dhabi Securities Exchange (ADX) on June 1, 2023. The company’s initial public offering (IPO) witnessed global demand, reaffirming investor confidence in its prospects.
The construction of Island “G” is crucial for the development of the Lower Zakum offshore field. By investing in such projects, ADNOC aims to optimize its operations and enhance its overall production capacity. Additionally, the contract reinforces ADNOC’s commitment to supporting the UAE’s economic growth by directing a significant portion of the contract value back into the local economy.
ADNOC L&S’s successful bid for this contract demonstrates its position as a trusted partner for ADNOC and its ability to undertake large-scale projects in the energy sector. As the company continues to expand its capabilities and explore new verticals, it is well-positioned to contribute to the growth and success of the UAE’s energy industry.