Yara International ASA and National Oil Corporation (NOC) of Libya / Libyan Investment Authority (LIA) have completed all major agreements to establish a joint venture for the production and marketing of mineral fertilizer.
Yara International ASA and National Oil Corporation (NOC) of Libya / Libyan Investment Authority (LIA) have completed all major agreements to establish a joint venture for the production and marketing of mineral fertilizer. The planned joint venture will be owned 50% by Yara and 50% by the Libyan party (National Oil Corporation and Libyan Investment Authority) and includes the ammonia and urea plants located at Marsa El Brega in Libya, presently owned by NOC. It is planned that the newly formed joint venture will commence the operation of the plants during the month of September 2008.
This partnership agreement signed today covers upgrading of the existing production facilities at Marsa El Brega in Libya, and to study the feasibility of adding new world class fertilizer plants.
Dr. Shokri Ghanem, Chairman of NOC, emphasized his previous statement that "This partnership is another example of NOC's new policy of attracting foreign investment and expertise in the oil and gas industry with particular attention to the downstream sector for the benefit of the diversification and integration of the Libyan economy. This new cooperation we strongly believe will bring together a global fertilizer company and a national corporation having the qualifications to create such a joint venture able to upgrade the existing plants as well as adding new capacities and strengthening Libya's position in the international market".
"With our new partnership with The National Oil Corporation and Libyan Investment Authority we have found an excellent strategic fit, including sound economics and future development opportunities. We believe that this new cooperation will serve to further strengthen Yara's position as the global market leader within the fertilizer industry," says President and CEO of Yara International, Thorleif Enger reaffirming his previous statement.
The existing operations currently produce approximately 700,000 tones of ammonia per year, of which approximately 150,000 tones are available for sale, and 900,000 tones of urea.