By Hadeel Al Sayegh

DUBAI, (Reuters) – Two people familiar with the matter said that Abu Dhabi National Oil Company (ADNOC), a state-owned oil company in Abu Dhabi, was considering an initial public offer (IPO) for its maritime services, logistics, and shipping arms next year.

ADNOC Logistics & Services (ADNOC L&S) has been selected for a potential float in Abu Dhabi in 2022, said the sources, declining to be named as the matter is not public.

After assessing market conditions and investor appetite, a deal may be possible.

When Reuters reached out to ADNOC on Sunday, they declined to comment.

The Gulf oil industry is looking to sell stakes in their energy assets in order to capitalise on the rebound in crude oil prices and attract foreign investors.

ADNOC supplies almost 3% of the world’s oil demand and is looking to get value out of businesses it has, as well as divest non-core assets.

It also took advantage of an increase in the Abu Dhabi equity index. The best performing market in the Gulf, it is currently up around 65%.

ADNOC offered a 11% share in its drilling company to investors in September. It has since raised over $1.1 billion. Through the Fertiglobe public share sale, $795 million was raised by OCI and ADNOC through chemicals company OCI.

ADNOC L&S delivers , refined products, dry bulk and liquefied from Abu Dhabi to its international customers.

After combining Abu Dhabi National Tanker Co., Petroleum Services Co. and Abu Dhabi Petroleum Ports Operating Co.

It has over 240 chartered and owned vessels. These include large crude carriers and tankers. The unit is the sole licensed operator that can service all Abu Dhabi petroleum ports.

ADNOC considers the business an integral unit and is working to grow its crude oil production capability to 5 million barrels per hour by 2030.

ADNOC and its customers also use the feeder vessels of this unit to move cargo. The coronavirus pandemic caused supply chain disruptions and bottlenecks that led to cargo shipping rates skyrocketing. This has resulted in freight prices for cargo rising dramatically.