The JV will become the largest export-focused nitrogen fertilizer platform globally
The Abu Dhabi National Oil Company (ADNOC) recently announced a new strategic partnership with OCI, a global producer and distributor of natural gas-based fertilizers and industrial chemicals, headquartered in the Netherlands.
The partnership will see ADNOC combine its fertilizer business, ADNOC Fertilizers, into OCI’s Middle East and North Africa (MENA) nitrogen fertilizer platform to form a new joint venture (JV).
The JV will become the largest export-focused nitrogen fertilizer platform globally and the largest producer in the MENA region with a production capacity of 5mn tons of urea and 1.5 million tons of sellable ammonia. ADNOC and OCI will own a 42% and 58% stake in the JV respectively.
In conjunction with this joint venture, ADNOC Fertilizers has also signed a new long-term gas supply agreement with ADNOC, which will provide its facilities in Ruwais with the required feedstock for its operations based on a competitive pricing formula.
Dr. Sultan Ahmed Al Jaber, UAE Minister of State and CEO, ADNOC Group, will be Chairman of the Board. Nassef Sawiris will assume the role of CEO of the JV, alongside his current role as CEO, OCI.
“Pooling our assets and capabilities is a value enhancing step for both companies, allowing us to leapfrog competitors to become the top nitrogen export platform globally,” commented Dr. Sultan Al Jaber.
“I believe that this platform has significant potential for future growth and value creation, with the support and under the guidance of its two key shareholders,” said Sawiris.
ADNOC Fertilizers has a track record of more than 35 years in fertilizer production, operating two plants in ADNOC’s integrated downstream complex in Ruwais in the UAE. The plants combined have an annual capacity of 1.2mn tons of gross ammonia and 2.1mn tons of urea.
