AD Ports Group will provide offshore and shipping services for energy companies in the oil-rich Caspian Sea after forming a new joint venture with Kazmortransflot (KMTF), a fully-owned subsidiary of the Kazakh National Oil Company.
The Abu Dhabi-based company will be the majority stakeholder in the new company, which will be owned 51 percent by AD Ports Group and 49 percent by KMTF.
The Caspian Sea region is one of the oldest oil-producing areas in the world and is an increasingly important source of global energy production. With the ongoing upgrades of fleets and facilities and some major offshore projects in the area, such as the multi-billion-dollar expansion of the Kashagan field, there are plenty of opportunities for the new company.
The new company will offer a range of services, including offshore support vessels, integrated offshore logistics and subsea solutions to start with. At a later stage, it plans to offer container feedering, ro-ro (roll-on-roll-off ships) and crude oil transportation in the Caspian Sea and the Black Sea.
The company will tender for several identified projects with estimated maritime contract values of more than $780 million. It will look at other investments opportunistically.
With an objective to jointly carry 8-10 million tonnes of crude annually in the medium term, AD Ports Group and KMTF also signed a seven-year vessel pooling agreement. It will see KMTF’s fleet working alongside SAFEEN Group’s existing AFRAMAX tanker, with the company planning to acquire further vessels in the short term.
By combining AD Ports Group’s portfolio of global maritime services and shallow water offshore expertise with the strong fleet, track record and local knowledge of KMTF, the joint venture will create an experienced new entrant in the highly valued Caspian Sea and the Black Sea region.
Falah Mohammed Al Ahbabi, Chairman of AD Ports Group, commented: “This new joint venture with KMTF opens the door to enormous opportunities in the Caspian Sea, which plays a key role in global energy production. It is serviced by prominent players within the energy sector.”
Mirzagaliyev Magzum, Chairman, KazMunayGas, stated: “As the world looks for reliable energy sources in challenging conditions, we can provide a full portfolio of services supported by a modern fleet and teams of experts combining local knowledge and global experience.
“Companies operating in the Caspian Sea oil fields are looking for reliable partners and a broad range of value-added services. Working together, KMTF and AD Ports Group will provide the ideal solution.”
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