Norway’s Yara sells stake in Libyan ammonia and urea producer Lifeco

LONDON (ICIS)–Norwegian fertilizer group Yara on Monday revealed that it had divested full ownership interest in the Libyan Norwegian Fertiliser Company (Lifeco) to former partner National Oil Corporation (NOC).

Yara’s full legal ownership interest in the Marsa El-Brega manufacturer, together with all economic rights and all obligations and liabilities were transferred to state-owned NOC on 31 December.

The Oslo-headquartered major said in a short statement that the agreement had been reached with NOC and remaining shareholder Libyan Investment Authority (LIA).

Prior to the agreement, Yara owned 50% of Lifeco and the Libyan entities each held a 25% stake in the manufacturer that can produce up to 900,000 tonnes/year of prilled urea and 700,000 tonnes/year of ammonia.

“Yara expects to book a minor pre-tax gain in its Q4 2020 results following the transaction,” the statement concluded.

While Lifeco’s plants have suffered regular shutdowns due to civil unrest and lack of feedstock, NOC said in its own press release the acquisition will enable the units to restart after the completion of maintenance.

“This acquisition will enable the Libyan party to restart the plants and conduct maintenance and works necessary to ensure they are well looked after, and to ensure the continuation of payment of employees’ salaries,” it added without providing further details.