AD Ports’ new joint venture to target Caspian Sea companies

State-owned AD Ports Group has signed an agreement with Kazakhstan’s KMTF (Kazmortransflot) to provide offshore and shipping services for energy companies in the Caspian Sea, state-run WAM news agency reported.

The joint venture, which will be 51 percent owned by AD Ports Group and 49 percent by KMTF, a wholly-owned offshore logistics and services subsidiary of the Kazakh National Oil Company (KazMunayGas), will provide services, including offshore logistics and subsea solutions. Container feedering, ro-ro and crude oil transportation in the Caspian Sea and the Black Sea will be offered later.

Furthermore, the JV will tender for several projects worth more than $780 million.

The two companies also signed a seven-year vessel pooling agreement. This includes the provision of several tankers to transport crude oil internationally, with plans to jointly carry eight to 10 million tonnes of crude annually in the medium term.

“The 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,” said Falah Mohammed Al Ahbabi, chairman of AD Ports Group.

Earlier this month, Sudan signed a preliminary agreement with a group led by the UAE’s AD Ports Group and Invictus Investment to build and operate the Abu Amama port and economic zone on the Red Sea with a $6 billion investment.

The project, located about 200km north of Port Sudan, would include an economic zone, an airport and an agricultural zone of 415,000 acres.

In February, AD Ports Group raised over $1 billion in an initial public offering.