AD Ports Group Expands Fleet with Two Vessels for Kazakhstan Oil Transport
Posted 28/11/2023 14:06
AD Ports Group, in collaboration with Kazakhstan national shipping company KazMorTransFlot (KMTF), has acquired two oil tankers, Liwa and Taraz, for transporting Kazakhstan oil across the Caspian Sea. Operating under the joint venture Caspian Integrated Maritime Solutions (CIMS), the vessels represent a combined investment of $35 million and are tailored for the Caspian's shallow draft, meeting international oil companies' requirements.
The vessels, equipped with inert gas systems to ensure safety and compliance with modern standards, will play a pivotal role in improving Kazakhstan's global trade footprint. They will operate along a strategic route, transporting Kazakhstan's oil to Azerbaijan and further to global destinations through the Mediterranean or Black Sea.
Ammar Mubarak Al Shaiba, AD Ports CEO of the Maritime and Shipping Cluster, emphasized the strategic milestone of the investment, stating, "This move symbolizes our unwavering commitment to excellence, safety, and sustainable practices as we navigate towards a brighter future for global shipping and trade."
Aidar Orzhanov, KMTF General Director, highlighted the project's alignment with the task of the President of the Republic of Kazakhstan, K.K.Tokayev, to create alternative routes for transporting Kazakhstani oil. Orzhanov expressed optimism about the long-term cooperation with AD Ports Group.
KMTF, fully owned by the national Kazakhstan oil company KazMunayGas, aims to efficiently and safely transport Kazakhstani oil in the Caspian Sea for international shipment. The acquisition brings the total number of oil tankers under the KMTF agreement to five, following the earlier purchase of three Aframax tankers in 2023.
In a separate investment move, AD Ports recently announced a $200 million investment to acquire 10 offshore vessels from E-NAV, reinforcing its offshore operations in the Middle East and Southeast Asia. The fleet comprises various vessel types, enhancing AD Ports' capabilities, capacity, and geographical footprint in the offshore segment.
The investment is expected to generate over $70 million per year in revenue over the next three to five years, supporting AD Ports' strategy of balancing its maritime business portfolio and navigating the forecasted upward trend in the offshore oil and gas market. The acquired vessels, with an average age of around nine years, are set to be delivered in the fourth quarter, with financial consolidation beginning in the first quarter of 2024.