Uchenna Izundu
OGJ International Editor
LONDON, Feb. 10 -- Yara International ASA will form a joint venture with Libya's National Oil Corp. (NOC) and the Libyan Investment Authority (LIA) to create the Libyan Norwegian Fertilizer Co. (Lifeco).
Yara, NOC, and LIA will have stakes of 50%, 25%, and 25% respectively in Lifeco, which will own the fertilizer facilities at Marsa El Brega on the Mediterranean coast, some 700 km east of the Libyan capital Tripol. The closing of the deal follows approval of the required licenses under the Libyan Investment Law.
NOC will supply gas for the fertilizer plant that will undergo a revamp, and it produces 900,000 tonnes/year of urea and 150,000 tonnes/year of merchant ammonia. The existing Marsa El Brega fertilizer assets are valued at $225 million, and NOC will transfer these to Lifeco, while Yara contributes to Lifeco the corresponding value in cash. Yara will handle all urea and ammonia exports from Lifeco.
A second phase of production facilities may be developed, subject to economic evaluations, when new natural gas resources are available.
Sirte Oil Co., a NOC subsidiary, will provide key utilities and services as well as operate the rest of the chemical complex at Marsa El Brega.
Gianni Paci at Yara will become Lifeco's chief executive with a joint core management team of NOC and Yara executives.
Contact Uchenna Izundu at [email protected].