The Abu Dhabi National Oil Company’s (ADNOC) shipping and maritime logistics arm, ADNOC Logistics & Services (ADNOC L&S), has announced that it has acquired all of the UAE-based assets of Speedy Hire PLC (Speedy), consolidating the position of ADNOC L&S as the largest integrated logistics provider in the GCC by adding over 2,000 pieces of material handling equipment.
Speedy Hire is among the UK’s leading rental companies for tools and equipment used in the oil & gas, construction and industrial sectors. Under the terms of the acquisition, ADNOC L&S has taken ownership of Speedy’s equipment, stock and other fixed assets relating to its Middle East business, which comprise more than 2,000 pieces of equipment, including cranes, forklifts, fire trucks and other high-value machinery used for offshore and onshore material handling services.
According to a statement by ADNOC, the transaction includes a Transitional Services Agreement with ADNOC L&S for up to four months, to support the transfer of assets. During this time, Speedy’s UAE-based employees will be on-boarded by ADNOC L&S at its Mussafah offshore logistics base. Speedy currently has around 600 employees in the UAE.
Captain Abdulkareem Al Masabi, CEO, ADNOC Logistics and Services, said: “The expansion plan we are pursuing is in line with ADNOC Group’s 2030 growth strategy. Speedy has been an efficient and reliable equipment and manpower services specialist for several years, and their assets and skilled personnel in the region are valuable as we look to expand our offshore logistics operations. We already have a sizeable offshore logistics base in Mussafah, the largest in the region, from which we provide offshore logistics solutions to nine locations, including six artificial islands. The assets we are acquiring will strengthen the integrated logistics services that we provide and deepen our offering within oil & gas logistics.”
ADNOC L&S already provides offshore material handling services to ADNOC Offshore in the UAE and is currently the largest integrated maritime logistics and shipping company in the GCC, and owner and operator of the largest shipping fleet in the UAE. Speedy, meanwhile, has been a leading material handling operator for the oil & gas sector in the Middle East since 2012.
ADNOC L&S said it is also pursuing a major maritime fleet expansion programme which has seen it acquire 16 deep-sea vessels, including six Very Large Crude Carriers (VLCC) in the last 12 months, adding 12 million barrels of crude cargo capacity. The company expects to continue expanding its fleet capacity in line with ADNOC’s commitment to increasing its oil & gas output.
ADNOC L&S currently provides integrated logistics solutions from its four bases in the UAE and said that the synergy between Speedy’s assets and its logistics expertise is expected to “result in greater efficiencies for the company’s global clientele and firmly positions it as a leader in integrated logistics for the oil & gas sector”.