Yara to establish Libyan joint venture

Oslo-Yara International ASA and National Oil Corp. (NOC) of Libya / Libyan Investment Authority (LIA) said July 17 that they have completed all major agreements to establish a joint venture for the production and marketing of mineral fertilizer. The planned jv will be owned 50 percent by Yara and 50 percent by NOC/LIA, and includes the ammonia and urea plants located at Marsa El Brega in Libya presently owned by NOC. It is planned that the newly formed jv will commence the operation of the plants during September 2008. The agreement covers the upgrading of the existing production facilities at Marsa El Brega in Libya, as well as a feasibility study for adding new world class fertilizer plants. The existing operations currently produce approximately 700,000 mt/y of ammonia – of which approximately 150,000 mt/y are available for sale – and 900,000 mt/y of urea. “This partnership is another example of NOC’s new policy of attracting foreign investment and expertise in the oil and gas industry, with particular attention to the downstream sector for the benefit of the diversification and integration of the Libyan economy,” said Dr. Shokri Ghanem, NOC chairman. “This new cooperation we strongly believe will bring together a global fertilizer company and a national corporation having the qualifications to create such a joint venture able to upgrade the existing plants as well as adding new capacities and strengthening Libya’s position in the international market.” “With our new partnership with The National Oil Corporation and Libyan Investment Authority we have found an excellent strategic fit, including sound economics and future development opportunities,” said Yara President and CEO Thorleif Enger. “We believe that this new cooperation will serve to further strengthen Yara’s position as the global market leader within the fertilizer industry.”