Jul 03 | 2019
Largest MENA Nitrogen Fertilizer Platform
Energy group Abu Dhabi National Oil Co. and industrial chemicals firm OCI have announced a new joint venture, creating the world's largest export-focused nitrogen fertilizer platform.
The new venture will combine ADNOC’s fertilizer business with OCI’s Middle East and North Africa nitrogen fertilizer platform and create a business with production capacity of 5 million tons of urea and 1.5 million tons of sellable ammonia.
“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. It will also enable us to access new markets, benefitting both existing and new customers,” said Sultan Ahmed Al Jaber, ADNOC Group CEO.
Abu Dhabi Trading Hub
The establishment of the new joint venture is expected to bolster breakbulk demand in the Emirate as both partners eye further investment in the country’s fertilizer infrastructure and expansion of ancillary oil and gas assets.
“It is another milestone in the delivery of ADNOC’s 2030 strategy and our ambitions to expand ADNOC’s Downstream portfolio,” Jaber said, adding that it supported “ADNOC’s objectives to attract investors to Ruwais by leveraging its strategic location, world-class logistics and the UAE’s abundant gas resources at commercially attractive terms.”
The new entity will be based in Abu Dhabi and registered in the Emirate’s international financial center, Abu Dhabi Global Market, strengthening city’s role as a nexus for fertilizer expertise and trading. ADNOC will own a 42 percent stake in the new venture while and OCI will own remaining 58 percent stake.
Largest MENA Fertilizer Producer
Forming the largest fertilizer producer in the MENA region, the combined entity will have annual revenues of US$1.74 billion, based on 2018 pro forma figures. It will be headed by OCI CEO Nassef Sawiris, who will take on the chief executiveship alongside his current role.
“I am very pleased to start a long-term strategic partnership with ADNOC, a company which has a clear downstream strategy and drive to unlock value. This partnership creates a first-of-its-kind export platform with best-in-class cash conversion metrics. 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,” Sawiris said.
The board of the new entity will consist of six members nominated by OCI and four nominated by ADNOC. Sawiris will be supported by a joint management team of experienced key executives from OCI and ADNOC.
The new venture will combine ADNOC’s fertilizer business with OCI’s Middle East and North Africa nitrogen fertilizer platform and create a business with production capacity of 5 million tons of urea and 1.5 million tons of sellable ammonia.
“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. It will also enable us to access new markets, benefitting both existing and new customers,” said Sultan Ahmed Al Jaber, ADNOC Group CEO.
Abu Dhabi Trading Hub
The establishment of the new joint venture is expected to bolster breakbulk demand in the Emirate as both partners eye further investment in the country’s fertilizer infrastructure and expansion of ancillary oil and gas assets.
“It is another milestone in the delivery of ADNOC’s 2030 strategy and our ambitions to expand ADNOC’s Downstream portfolio,” Jaber said, adding that it supported “ADNOC’s objectives to attract investors to Ruwais by leveraging its strategic location, world-class logistics and the UAE’s abundant gas resources at commercially attractive terms.”
The new entity will be based in Abu Dhabi and registered in the Emirate’s international financial center, Abu Dhabi Global Market, strengthening city’s role as a nexus for fertilizer expertise and trading. ADNOC will own a 42 percent stake in the new venture while and OCI will own remaining 58 percent stake.
Largest MENA Fertilizer Producer
Forming the largest fertilizer producer in the MENA region, the combined entity will have annual revenues of US$1.74 billion, based on 2018 pro forma figures. It will be headed by OCI CEO Nassef Sawiris, who will take on the chief executiveship alongside his current role.
“I am very pleased to start a long-term strategic partnership with ADNOC, a company which has a clear downstream strategy and drive to unlock value. This partnership creates a first-of-its-kind export platform with best-in-class cash conversion metrics. 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,” Sawiris said.
The board of the new entity will consist of six members nominated by OCI and four nominated by ADNOC. Sawiris will be supported by a joint management team of experienced key executives from OCI and ADNOC.
