Execution of this strategy delivered the first results with our maiden contracts for the supply of newly introduced ADNOC Aromatic Solvent 150, a heavy aromatic naphtha-based solvent that finds significant application upstream in the oilfields - specifically as an agent to support and ensure well integrity. The attached images show supply activities for this product in the first week of September 2023, delivering to ADNOC Onshore, fulfilling one of the contracts.
Deliveries to ADNOC Offshore in IBCs which commenced in December 2023, are also captured. We also secured our first order for Asphaltene Inhibitor, a crude oil process chemical. ADD participation in this space is expected to deliver 100X dividend to the Group, availing robust, secure, and effective supply alternatives that will contribute to the futureproofing of the wider business.
These two products, from the current contracts, are expected to contribute significantly to the doubling of the Division’s Gross Margins, in line with our ambitious 2024 – 2028 growth strategy. In the medium term, the direct import and distribution of third-party products initiative will deliver even better profitability alongside building a resilient, sustainable Specialties trading business. Work on aggressively expanding this portfolio continues with ADD, through the Lubricants, Base Oil and Specialties unit, developing supply chain operational experience and
readiness for the natural next frontier – localization of these solutions. This proactive anticipation positions ADD for an impactful role as most of these solutions gain localization through Ta’ziz Industrial Chemicals Zone, for example. So far, these new products have been delivered Capex-free.
