OCP Group and Abu Dhabi National Oil Company have entered into an alliance to create a world-class fertilizer company to accelerate the execution of their respective growth strategies.
The deal was announced on the sidelines of ADNOC’s Downstream Investment Forum, held in Abu Dhabi on May 13 and 14, 2018.
Indeed, the project reinforces the partnership, announced in December 2017, for the conclusion of a major long-term sulfur supply agreement.
Thus “OCP and ADNOC will ensure the development of skills and the training of human resources necessary for the success of their partnership”.
The future global fertilizer company will benefit from the competitive advantages of both groups, including sulfur resources, ADNOC’s ammonia-gas and marine logistics expertise, and OCP’s access to the world’s largest phosphate resources, its centenary know-how in the fertilizer industry and the importance of its commercial network.
According to a joint statement, the JV should include two production hubs, one in Ruwais (UAE) and the other in Jorf Lasfar (Morocco) including new and existing production capacities – which will will provide privileged access to global markets.
This partnership comes at the same time as ADNOC announces the increase of its sulfur production capacity – currently in the order of 7 million tonnes – by more than 50% as the company increases its recovery and recycling capacities. treatment of its gas resources.
“On the OCP side, the partnership is in the context of the large-scale expansion program launched by the group for the period 2008-2028, aimed at responding to the growth in global demand for fertilizer,” the statement said.
The first phase of this program, completed this year, brought the group’s fertilizer production capacity to 12 million tonnes and its crude phosphate export capacity to more than 18 million tonnes.
“The partnership with OCP Group illustrates ADNOC’s intention to maximize the value of all of our resources as we pursue our downstream diversification strategy, which aims to expand our end product range and revenues.
This agreement is part of our new partnership model announced last year to open up our value chain to long-term, reliable and value-added partners who will complement our expertise and resources. and improve our access to the market, “says Dr. Sultan Ahmed Al Jaber, Minister of State of the United Arab Emirates and DG of ADNOC.” Moreover, this agreement is in line with the will of our leaders to develop more the privileged relations between the United Arab Emirates and the Kingdom of Morocco, which will constitute a solid base for our project to create a new world champion in the fertilizer industry, “he adds.
For his part, Mostafa Terrab, CEO of the OCP Group, said that “this alliance between our two groups brings together the largest phosphate reserves in the world with the largest sulfur production capacity in the world, as well as the related expertise. Through this new type of partnership in the sector, we will have integrated world-class integrated assets that are geographically complementary. This partnership, as part of our development strategy, will further strengthen our ability to serve the growing global demand for fertilizer. “
