Abu Dhabi: The Abu Dhabi National Oil Company (Adnoc) and the OCP Group of Morocco (OCP) are planning to explore the phased creation of a new global fertiliser joint venture to boost their presence globally and extend their partnership further.
The two companies already have a partnership established through the existing long-term sulphur offtake agreement that was announced in December 2017.
“We view this new partner-ship as a unique opportunity, in line with our global strategy, that will contribute to our ability to serve growing demand for fertilisers worldwide.””Share on facebookTweet this
The first phase of this programme was completed this year and has brought the group’s existing fertiliser capacity to 12 million tons, and rock export capacity to over 18 million tons, according to a statement from Adnoc.
“The agreement builds on the expanded partnership model we announced last year, as we open our entire value chain to reliable, value-adding, long-term partners, who can complement our capabilities and resources, and enhance our market access,” said Dr Sultan Ahmad Al Jaber, UAE Minister of State and Adnoc Group CEO.
“Importantly, this agreement is aligned with the directives of our leadership to further build on the existing close relationship and ties between the United Arab Emirates and Morocco, and we look forward to building on these firm foundations as we work towards potentially building a new global fertilisers champion.”
Two fertiliser production hubs are being planned one in the UAE and one in Morocco, giving the proposed joint venture global market reach.
Adnoc has world-scale sulphur production, ammonia and gas expertise, and a shipping and logistics network, while OCP has access to large phosphate resources, its century-long fertilisers know-how and its marketing network.
The development comes as Adnoc unveiled its strategy to become a major global player in the downstream industry, enabling it to further stretch the value of every barrel it produces.
The company plans to spend $45 billion (Dh165.28 billion) along with its partners in the expansion of Ruwais refinery, about 230km from Abu Dhabi to boost production capacity and increase its market share across the globe.
Mostafa Terrab, OCP Group chairman and CEO, said the collaboration represents an unprecedented alliance in the industry, providing the partners with a world-class integrated asset base and complementary geographic locations.
“We view this new partnership as a unique opportunity, in line with our global strategy, that will contribute to our ability to serve growing demand for fertilisers worldwide.”