Abu Dhabi: Abu Dhabi National Oil Company (Adnoc) on Monday announced a new Joint Venture partnership with Netherlands-based firm OCI to propel the new entity to become the largest exporter of nitrogen fertilisers globally as well as the largest producer in the Mena region.
The annual revenues for the combined entity will be $1.74 billion (Dh6.38 billion), based on 2018 pro forma figures with Adnoc and OCI owning a 42 per cent and 58 per cent stakes in the joint venture respectively.
“This unique business combination is in line with Adnoc’s approach to value-added partnerships and will improve the profitability and cash flow of our fertiliser portfolio,” said Dr Sultan Ahmad Al Jaber, UAE Minister of State and Adnoc Group CEO in a statement.
“It also supports 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. It is another milestone in the delivery of Adnoc’s 2030 strategy and our ambitions to expand Adnoc’s Downstream portfolio.”
OCI is a global producer and distributor of natural gas-based fertilisers and industrial chemicals, headquartered in the Netherlands. The partnership will see Adnoc combine its fertiliser business, Adnoc Fertilizers, into OCI’s Middle East and North Africa (Mena) nitrogen fertiliser platform to form a new joint venture.
The JV will become the largest export-focused nitrogen fertiliser platform globally and the largest producer in the Mena region with a production capacity of 5 million tonnes of urea and 1.5 million tonnes of sellable ammonia.
Nassef Sawiris will assume the role of CEO of the new firm, alongside his current role as CEO of OCI, according to the statement.