By Mahmoud Habboush
(Bloomberg) — Abu Dhabi National Oil Co. will combine three shipping and ports units less than a month after consolidating two offshore oil and gas businesses.
Abu Dhabi National Tanker Co., Petroleum Services Co. and Abu Dhabi Petroleum Ports Operating Co. will be combined, effective by the end of 2017, government-run Adnoc said Tuesday in a statement. Adnoc said it expects the consolidation to lead to improved efficiency and savings, which it didn’t specify.
Abu Dhabi, holder of about 6 percent of global oil reserves, is reining in spending as a drop in oil prices to about half of 2014 levels slows economic growth. The Gulf emirate plans to cut costs by combining its two biggest banks and unifying two of its largest sovereign investment funds, International Petroleum Investment Co. and Mubadala Development Company PJSC. It’s also consolidating offshore energy businesses Abu Dhabi Marine Operating Co. and Zakum Development Co.
The new shipping company will operate more than 165 vessels, including vessels to carry liquefied natural gas, chemicals and bulk cargo, Adnoc said. Abu Dhabi is the largest sheikhdom in the United Arab Emirates.
© 2016 Bloomberg L.P