ADNOC reportedly eyeing acquisition of offshore oil services firm

ADNOC reportedly eyeing acquisition of offshore oil services firm

Abu Dhabi National Oil Co (ADNOC) is a potential contender to buy a local offshore oil-services firm that counts the state-owned crude producer among its major clients, according to people familiar with the matter.

Zakher Marine International is working with Bank of America Corp. as it weighs its strategic options, including a sale, said the people, declining to be named because the information isn't public yet. The process is still at an early stage and the company may still decide against selling, they said. Other buyers may also emerge.

Established in 1984, privately owned Zakher provides services to the offshore energy industry and currently operates a fleet of more than 35 support vessels, according to its website. It wasn't immediately clear what valuation the company would seek, the people said.

Bank of America and ADNOV declined to comment, while representatives of Abu Dhabi-based Zakher didn't reply to several messages and calls seeking comment.

Oil-services companies have been under strain from the drop in crude prices and the coronavirus pandemic that have forced producers to slash budgets and cut back on drilling and new projects. Output cuts by OPEC and its allies have added to pressure. The downturn has made the firms that supply