Yara signs fertilizer JV deal with Libya's NOC

25 April 2007 10:37  [Source: ICIS news]

LONDON (ICIS news)--Norwegian fertilizer major Yara has signed an agreement with National Oil Corporation (NOC) of Libya for a 50:50 fertilizer production and marketing joint venture, the company said on Wednesday.

Yara said in a statement that the intention was to finalise the negotiations and to establish the new company by the end of 2007.

The joint venture would comprise ammonia and urea plants currently owned by NOC at Marsa el-Brega in Libya.

“NOC and Yara have decided to engage in a partnership to further develop the existing production capacity at Marsa el-Brega and to develop a strategic co-operation for the potential development of further fertilizer projects in Libya,” Yara said.

The existing operations currently produce about 700,000 tonnes/year of ammonia, of which approximately 150,000 tonnes are available for sale, and about 900,000 tonnes/year of urea.

NOC would supply natural gas and services to the new company, while Yara would contribute towards a further upgrade of the production assets, including building new world-scale fertilizer plants, and would market the export of products from Marsa el-Brega.

By: Hilde Ovrebekk
+44 20 8652 3214

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