AD Ports Group also signed a ship sharing agreement with KMTF.

Abu Dhabi Port Group, the operator of industrial cities and free zones in the Emirate, has signed a shareholder agreement with Kazmortransflot, a subsidiary of Kazakhstan's national energy company KazMunayGas, to establish a joint venture. AD Ports Group will own 51% of the shares of the new entity, while KMTF will own 49%.

The new company is expected to provide a wide range of services, including maritime support and crude oil transport vessels in the Caspian Sea and the Black Sea, AD Ports Group said in a document submitted to the Abu Dhabi Stock Exchange. AD Ports Group said that KMTF, the offshore logistics department of KazMunayGas, would submit tenders for some determined projects, and the estimated value of the maritime contract exceeded 780 million dollars.

The new joint venture with KMTF has opened the door to great opportunities for the Caspian Sea, which plays a key role in global energy production and is served by well-known enterprises in the energy field, said Falah Al Ahbabi, chairman of AD Ports Group.

The region has large oil and gas reserves in the Caspian Sea and Caspian Basin. The deal comes at a time when Kazakhstan wants to expand the production of its giant Kashagan oil field, which is operated by a consortium that includes Eni in Italy, ExxonMobil in the United States and KazMunayGas. This effort is expected to create opportunities in the region, especially with the continuous upgrading of the fleet and facilities, as well as some major offshore projects, such as the multi billion dollar expansion of Kashagan oilfield, AD Ports Group said.

AD Ports Group, founded in 2006, owns and operates 10 ports in the United Arab Emirates. These include Halifa Port, Zayed Port, Musafa Port, Fuchaila Terminal, Community Port, Kamsar Port and Abu Dhabi Cruise Terminal, as well as a terminal in Guinea. AD Port Group also manages more than 550 square kilometers of industrial zone and end-to-end logistics business, in addition to providing a series of marine services. Russia's military offensive in Ukraine and its long-term insufficient investment in new oil and gas infrastructure led to the global energy crisis.

As the world seeks reliable energy under challenging conditions, we will be able to provide a full service portfolio supported by modern fleets and expert teams, combining local knowledge and global experience, said Mirzagaliyev Magzum, chairman of KazMunayGas. The International Energy Forum said that by 2030, upstream investment in oil and gas needs to be increased and maintained at a level close to the $525 billion level before the coronavirus to ensure market balance. In 2021, upstream investment will be sluggish for the second year in a row, reaching US $341 billion, about 25% lower than the level in 2019.