AD Ports Groups Inks Agreement With Kazmortransflot

AD Ports Groups Inks Agreement With Kazmortransflot

On December 28, 2022, KMTF (Kazmortransflot), a wholly-owned offshore logistics and services subsidiary of the Kazakh National Oil Company (KazMunayGas), and AD Ports Group (ADX: ADPORTS), the top facilitator of international trade, logistics, and industry, inked a shareholder agreement.

Following the agreement, an exclusive joint venture will be established, with AD Ports Group holding a 51 percent stake and KMTF holding a 49 percent stake to provide offshore and shipping services and crude transportation for energy companies with operations in the Caspian Sea and the Black Sea.

H.E. 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 internationalization and development,” Al Ahbabi remarked.

The joint venture will look at investments opportunistically and offer a broad range of services. These services will include offshore support vessels, integrated offshore logistics, and subsea solutions, and, at a later stage, will provide container feedering, ro-ro, and crude oil transportation in the Caspian Sea and the Black Sea.

The enterprise will tender for several identified projects with estimated maritime contract values of more than USD 780 million.

The joint venture will create a significant new entry in the highly prized Caspian Sea and the Black Sea region by combining KMTF’s strong fleet, track record, and local knowledge with AD Ports Group’s comprehensive range of global marine services and competence in shallow water offshore.

The project can be expected to open up prospects throughout the region, especially given the ongoing fleet and facility renovations now underway and some significant offshore projects, such as the multibillion-dollar extension of the Kashagan field.

AD Ports Group and KMTF also signed a vessel pooling agreement for seven years; the joint venture comprises the provision of multiple tankers for the worldwide transportation of crude oil.

The agreement will also allow KMTF’s fleet to operate alongside the AFRAMAX tanker, now owned by SAFEEN Group, with plans to buy additional vessels soon. In the medium term, it will jointly transport 8–10 million tonnes of crude annually.

Mirzagaliyev Magzum, Chairman, KazMunayGas, said: “This is an alliance of two world-class companies which complement each other’s strengths and understanding of the market. 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,” Magzum concluded.

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