Posts By Date - Green Markets

OCI, ADNOC Close Agreement, Establish Fertiglobe

October 1, 2019Breaking Industry NewsDan Cole

Netherlands-headquartered OCI NV and Abu Dhabi National Oil Co. (ADNOC) have announced the completion of their transaction to combine ADNOC’s fertilizer business into OCI’s Middle East and North Africa (MENA) nitrogen fertilizer platform, creating a world-leading joint venture. The combined company, which has been named Fertiglobe, started trading on Oct. 1 and is headquartered in the international financial center Abu Dhabi Global Market.

Fertiglobe will be the largest export-focused nitrogen fertilizer platform globally, and the largest producer in the MENA region with a production capacity of 5 million mt/y of urea and 1.5 million mt/y of merchant ammonia. It has over $1.7 billion of annual revenues based on 2018 pro-forma figures. OCI will fully consolidate the combined business. OCI owns a 58 percent stake in Fertiglobe, and ADNOC a 42 percent stake.

The transaction will place the OCI companies EBIC, EFC, and Sorfert, and the former ADNOC Fertilizers (Fertil) under the ownership of the new Fertiglobe joint venture. The two parties first revealed their plans in June to combine their Middle East and North African fertilizer assets in a new joint venture.

EuroChem Inks Memorandum of Intent for Possible New N Plant at Kingisepp

EuroChem Group AG, Zug, Switzerland, announced today that it has signed an early works contract for a potential new ammonia and urea production facility at Kingisepp in northwest Russia, subject to further investment plan approval, with Italy’s Maire Tecnimont.

Under the terms of the agreement, Maire Tecnimont will carry out preliminary engineering and site surveying work at the brownfield site adjacent to EuroChem’s existing production facilities at Kingisepp, the fertilizer group said.

According to a statement by Maire Tecnimont, the value of the future EPC contract for the construction of an ammonia and urea plant is estimated at about €1 billion with capacity of about 3,000 mt/d of ammonia and 4,000 mt/d of urea, once fully ramped up.