State-owned oil firm Abu Dhabi National Oil Company (ADNOC) is reportedly looking to sell shares in a new shipping unit through an initial public offering (IPO).

The company is consolidating the operations of Abu Dhabi National Tanker with Petroleum Services and Abu Dhabi Petroleum Ports Operating to form the new unit.

Once the merger is finalized, ADNOC would make a final decision on whether to sell a minority stake in the shipping business, Bloomberg said citing sources close to the matter. The company is not likely to make the decision before 2019.

ADNOC would allegedly sell the shares as part of its efforts to attract investment “into the emirate that pumps most of the crude in the United Arab Emirates,” Bloomberg cited undisclosed sources.

World Maritime News contacted the company for a confirmation and more details on the matter, however, ADNOC is yet to reply.

The Abu Dhabi-based oil major, which accounts for about 6 percent of global oil reserves, unveiled the merger plans in October 2016, saying that the new company would operate over 165 vessels, including LNG vessels, bulk carriers, chemical and products tankers, container and container-feeder vessels, as well as modern multi-purpose vessels and support vessels.

At the time, ADNOC said that the integration is expected to complete by the end of 2017.

World Maritime News Staff

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