Oslo-Yara International ASA said Feb. 18 that it, the National Oil Corp. of Libya (NOC), and the Libyan Investment Authority (LIA) have come a step further in plans to establish a joint venture for the production and marketing of mineral fertilizer in Libya. NOC and Yara signed a heads of agreement April 25, 2007, outlining the intention to establish a joint venture company that would comprise the ammonia and urea plants located at Marsa el Brega in Libya, presently owned by NOC. NOC, Yara, and LIA on Feb. 18 signed a joint venture framework agreement that will enable them, after final negotiations, to establish and commence the creation of the joint venture company. The planned jv will be owned 25 percent each by NOC and LIA, and 50 percent by Yara. Yara says this is a strategic partnership to further upgrade and develop the existing production capacity at Marsa el Brega and to evaluate and potentially develop further fertilizer projects in Libya. The existing operations currently produce approximately 700,000 mt/y, of which approximately 150,000 mt are available for sale, and 900,000 mt/y of urea. NOC will supply natural gas and services to the new company. It is intended that Yara will contribute towards a further upgrading of the production assets, including building new world-scale fertilizer plants, and will be appointed as the marketer of products from the Marsa el Brega site.
Transparency Across the Fertilizer Value-Chain