Abu Dhabi National Oil Company and OCP Group of Morocco agree to explore joint venture
Abu Dhabi National Oil Company (ADNOC) and OCP Group of Morocco (OCP) have agreed to explore the phased creation of a new global fertilizers joint venture.
The proposed joint venture will build on ADNOC’s world-scale sulphur production, ammonia and gas expertise, and shipping and logistics network, and OCP’s access to large phosphate resources, its fertilizers know-how and its marketing network, to develop a new global fertilizers producer, a statement said.
The proposed partnership will comprise two fertilizer production hubs, one in the UAE and one in Morocco, the statement added.
This proposed project extends the partnership already established through the existing long-term sulphur offtake agreement that was announced by the two firms in December 2017.
The two companies said they will work on developing capabilities that will support this venture, as they expand their partnership, leveraging their respective strengths and building their human capital.
The agreement aligns with ADNOC’s announced plans to increase production by at least 50 percent from its current levels of 7 million tons a year, as it looks to increase gas production by tapping into vast gas caps and scaling up sour gas production.
Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, said: “The proposed joint venture with OCP Group illustrates ADNOC’s intent to maximize the value of all our resources, as we grow our downstream business, diversify our product range and increase revenues.
"The agreement builds on the expanded partnership model we announced last year, as we open our entire value chain to reliable, value-adding, long-term partners, who can complement our capabilities and resources, and enhance our market access.
Mostafa Terrab, OCP Group chairman and CEO, added: “This collaboration between our companies brings together the world’s largest phosphate reserves and the world’s largest sulphur production capacity and it represents an unprecedented alliance in the industry, providing the partners with a world-class integrated asset base and complementary geographic locations.”For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.