Abu Dhabi-based AD Ports Group, a leading facilitator of global trade, has signed an agreement with Kazmortransflot (KMTF), to launch a joint venture (JV) to provide offshore and shipping services for energy companies in the Caspian and Black Seas.
The JV is 51 percent owned by AD Ports Group and 49 per cent owned by KMTF, a fully-owned offshore logistics and services subsidiary of the Kazakh National Oil Company (KazMunayGas).
In addition, the two parties have signed an agreement to pool tanker resources.
The joint venture, will look at investments opportunities and offer a broad range of services, including offshore support vessels, integrated offshore logistics and subsea solutions and, in future will offer container feeder, ro-ro and crude oil transportation in the Caspian Sea and Black Sea.
The enterprise will tender for a number of projects with estimated maritime contract values of more than AED2.8 billion ($762 million).
By combining AD Ports Group’s diverse 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 new opportunities in the highly valued Caspian Sea and the Black Sea regions.
AD Ports Group and KMTF also signed a seven-year vessel pooling agreement, the joint venture includes the provision of several tankers for the transportation of crude oil internationally. The agreement will see KMTF’s fleet working alongside Safeen Group’s existing AFRAMAX tanker, with the aim of acquiring further vessels. The objective is to jointly carry 8-10 million tonnes of crude annually in the coming years.
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.
Falah Mohammed Al Ahbabi, Chairman of AD Ports Group, said: “Under the direction of our wise leadership, AD Ports Group is looking to deploy our expertise in support of agreements that boost trade and economic relations with brotherly nations. 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, and is serviced by prominent players within the energy sector. By providing maritime services in this key market, AD Ports Group has reached a new level of internationalisation and development.”
Mirzagaliyev Magzum, Chairman, KazMunayGas, said: “This is an alliance of two world class companies who complement each other’s strengths and understanding of the market. As the world looks for reliable energy sources in challenging conditions, we will be able to 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.”
Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said: “Throughout 2022, AD Ports Group has looked to grow international business interests and expand the portfolio of maritime services we are able to offer customers around the world, in support of the vision of the leadership of the UAE. This joint venture – which is the first of its kind between a UAE company and the Kazakh National Oil Company – reflects how far and how fast we have grown, and how capable we now are of providing advanced offshore services in key global markets.”