Adnoc puts almost all of its subsidiaries under single unified brand
Move part of transformation strategy under group CEO Sultan Al Jaber to create more performance-driven culture
The Abu Dhabi National Oil Company is aligning almost all of its subsidiary companies under its Adnoc brand, the latest phase of its transformation into a more commercially-focused and performance-driven company as it looks to unlock maximum value from its resources, operations and partnerships.
The transformation strategy is being implemented by group chief executive Sultan Al Jaber, who took on the role last year with a mandate to make Adnoc more efficient and resilient.
The unified branding move supports efforts to create a “culture that is progressive, performance-driven, commercially focused and innovative”, said Dr Al Jaber. He described this “critical” change as both a challenge and an opportunity that would define Adnoc’s success.
The activities of the Adnoc group encompass upstream, midstream and downstream sectors with 3 million barrels of oil and 9.8 billion cubic feet of raw gas produced a day.
Its 20 specialist subsidiaries and joint ventures will become 16 under the unified brand. For example, the Zakum Development Company (Zadco) and the Abu Dhabi Marine Operating Company (Adma-Opco) – the two offshore units that are currently going through a consolidation – will be known as Adnoc Offshore.
Adnoc Logistics & Services will include shipping and ports services companies the Abu Dhabi National Tanker Company (Adnatco), the Petroleum Services Company (Esnaad) and the Abu Dhabi Petroleum Ports Operating Company (Irshad) - accounting for some 4,000 employees - which have already been undergoing an integration process since the end of last year.
Abu Dhabi Gas Industries, or Gasco, will be rebranded Adnoc Gas Processing and Al Hosn Gas, a joint venture with Occidental Petroleum, becomes Adnoc Sour Gas. National Drilling Company (NDC) becomes Adnoc Drilling. The single brand identity will also be rolled out across the 317 service stations operated by Adnoc Distribution.
Dr Al Jaber said that each company will, however, maintain operational autonomy within the group’s "centralised governance model". Suppliers, customers and other groups and individuals that do business with Adnoc subsidiaries will be unaffected by the rebranding, he said.
Borouge, its petrochemicals joint venture with Austria’s Borealis will not be renamed because of its “well-established brand and reputation” in that industry, according to Dr Al Jaber. Exploration and production units Al Yasat and Al Dhafra, which are in the early stages of their operations, are also exempted although they will eventually evolve and fall under the unified Adnoc brand identity, he said.
Under Dr Al Jaber, Adnoc is opening up for new partnerships and co-investments, for the first time across all areas of the group – not just in oil & gas concessions and petrochemicals but also in drilling, pipelines, storage and refining – and potential partners include international pension funds, private equity investors and global infrastructure specialists.
It is considering the sale of a stake to the public in Adnoc Distribution as part of its new corporate strategy to more actively manage its portfolio of assets.
“Our unified brand aims to shape a culture that will help unlock maximum value from our resources, our business and our partnerships,” said Dr Al Jaber. “A strong brand and reputation allows us to forge a clear and defined identity and positions us to enter new markets, enhance the scale of our partnerships and leverage our collective experience.”
The branding move illustrates how Adnoc is adopting more creative strategies and more flexible and agile business models to capture growth, said Mr Al Jaber.
Updated: October 15, 2017 06:33 PM