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Abu Dhabi’s national oil company ADNOC continues to expand its global footprint in both upstream and downstream sectors. ADNOC Logistics and Services (L&S) announced the completion of a $1.08 billion acquisition of an 80% stake in UK-based product tanker operator Navig8. This acquisition gives ADNOC L&S control of a modern fleet of 32 tankers and expands its portfolio to include commercial pooling and bunkering services. Additionally, ADNOC L&S revealed that it will acquire the remaining 20% of Navig8 by mid-2027 for a deferred consideration of $335–$450 million.
Simultaneously, ADNOC L&S secured up to $2 billion (AED 7.3 billion) in new financing to fuel its growth initiatives. This includes a $1.1 billion Hybrid Capital Instrument (HCI), with the remaining $900 million available for future investments or acquisitions until December 2026. Since its IPO in June 2023, ADNOC L&S has committed over $5 billion to investments, with its share price surging by over 175%. The HCI was arranged by Société Générale, with participation from several major banks. Navig8, with its fleet and operations across five continents, strengthens ADNOC’s global shipping capabilities.
Meanwhile, ADNOC Drilling, another subsidiary, is pursuing international projects in Kuwait and Oman. CFO Yousef Salem confirmed plans to leverage ADNOC’s international expansion to accelerate pre-qualification processes for drilling contracts. ADNOC Drilling aims to achieve or exceed its 2024 profit guidance of $1.2–$1.3 billion and recently launched Turnwell, a unit in partnership with SLB and Patterson-UTI, focused on unconventional oil and gas drilling. The company also formed Enersol, a joint venture with Alpha Dhabi Holding, to invest $1.5 billion in technology-driven oilfield services by 2025.
While ADNOC has yet to significantly expand its international upstream asset portfolio, its downstream acquisitions and investments in drilling and shipping are positioning the company as a strong competitor to global energy giants. With initiatives like XRG and strategic collaborations, ADNOC is solidifying its presence on the global stage.
