The Abu Dhabi National Tanker Company (Adnatco), the Petroleum Services Company (Esnaad), and the Abu Dhabi Petroleum Ports Operating Company (Irshad) will be funnelled into one, as yet unnamed, entity by years end, Adnoc said.
A fourth company, the National Gas and Shipping Company (NGSCO), will continue to operate separately although Adnoc, which owns a 70% stake, intends transferring its shareholding to the new company.
"By leveraging the experience and assets across the three companies, we aim to deliver an improved and cost-effective service to meet the needs of the Adnoc group," Al Jaber said.
“The consolidation will capture synergies, generate savings and ensure value creation.”
Adnatco, Esnaad and Irshad reportedly employ a combined workforce of about 4,000. There is no word on potential job cuts but Adnoc admit the synergies from the merger will leave it better placed to bid for business outside of the Adnoc group.
Just over 60% Adnatco’s business is sourced directly from Adnoc, while more than 90% of both Esnaad and Irshad’s business is Adnoc-dependent. NGSCO, whose other shareholders are BP, Mitsui and Total, derives 100% of its business from Adnoc, The National reported.
"Upon completion of the integration, the new company will be uniquely positioned to further extend its services to customers worldwide," said Al Jaber who confirmed the new company would also operate port management, oilfield services and storage facilities.
A new ceo will be selected to steer the merged company. Current ceos – Sultan Al Zaabi (Adnatco and NGSCO), Dagher Darwish Al Marar (Esnaad) and Khalifa Mohammed Al Qubaisi (Irshad) will remain in place until then to help navigate the amalgamation pathway.
Adnoc said the new company would operate a fleet of 165 vessels including LPG, chemical and products tankers, bulk carriers and boxships. Regulations mandating the number of crew needed to safely operate its vessels limit Adnoc’s scope for cost savings among its 2000 seaborne staff, a source said.
Adnoc combined its two major offshore operating companies – the Zakum Development Company (Zadco) and the Abu Dhabi Marine Operating Company (Adma-Opco) earlier this month. Earlier Al Jaber, who also serves as the UAE Minister of State, replaced most of Adnoc’s senior executives as part of his ruthless efficiency drive driven by the on-going low oil environment.
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