Abu Dhabi National Oil Co. has entered a strategic partnership that will combine ADNOC Fertilizers into the Middle East and North Africa (MENA) nitrogen fertilizer business of OCI NV, Amsterdam.
The new joint venture “will become the largest export-focused nitrogen fertilizer platform globally and the largest producer in the MENA region,” ADNOC said.
It will have production capacities of 5 million tonnes/year of urea and 1.5 million tpy of sellable ammonia. Revenue of the combined entity, based on 2018 results, will be $1.74 billion/year.
Interests will be ADNOC, 42%, and OCI, 58%.
The joint venture will be based in Abu Dhabi.
ADNOC Fertilizers operates two plants at Ruwais with combined capacities of 1.2 million tpy of gross ammonia and 2.1 million tpy of urea.
In conjunction with formation of the joint venture, ADNOC Fertilizers signed a long-term gas-supply agreement with ADNOC.
