Yara to establish fertiliser production JV with National Oil Corp of Libya |
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Wed, 25 Apr 2007 10:11
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OSLO (Thomson Financial) - Yara International ASA said it has signed a Heads of Agreement with the National Oil Corporation (NOC) of Libya with the intention of establishing a joint venture for the production and marketing of mineral fertiliser.The Norwegian chemicals firm said the planned joint venture will be owned 50 pct by each partner, and will comprise the ammonia and urea plants located in Marsa el Brega in Libya, presently owned by NOC.The intention, Yara said, is to finalise the negotiations and to establish the new company by the end of 2007.NOC and Yara said they have decided upon the partnership in an effort to further develop the existing production capacity at Marsa el Brega, and to develop a strategic co-operation for the potential development of further fertiliser projects in Libya.Marsa el Brega currently produces approximately 900,000 tonnes of urea a year, as well as 700,000 tonnes of ammonia -- of which approximately 150,000 tonnes are available for sale.Under the terms of the deal, NOC will supply natural gas and services to the new company, while Yara said it will contribute towards the upgrading of the venture's existing fertiliser plants, and the possible construction of new facilities.The Norwegian firm will also be the sole marketer of export products from the Marsa el Brega site.alastair.reed@thomson.comar/bsdCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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