Yara establishes JV with NOC of Libya

In April 2007 Yara signed a Heads of Agreement with the National Oil Corporation (NOC) of Libya, with the intention of establishing a joint venture for production and marketing of mineral fertilizer.

Under the agreement, the new joint venture would be owned 50/50 by each partner and comprise the ammonia and urea plants located in Marsa el Brega in Libya, previously owned by NOC Libya. It was hoped that all negotiations would be completed and the new company established by the end of 2007.
NOC and Yara also confirmed that they would engage in a partnership to develop the existing production capacity at Marsa el Brega, and begin a strategic cooperation for the potential development of further fertilizer projects in Libya.
 
At the time of the announcement, the ammonia and urea plants at Marsa el Brega produced some 700,000 tonnes of ammonia per year, of which approximately 150,000 tonnes were available for sale, along with 900,000 tonnes of urea.

Ambitions ahead
As part of the agreement, NOC contracted to supply natural gas and services to the new company. In early 2007, NOC was producing about 2.7 trillion standard cubic feet per day of unprocessed gas, the feedstock for fertilizer production.

On completion of the deal, it was intended that Yara would contribute towards a further upgrading of the production assets, including building new world-scale fertilizer plants, and act as the marketer for export of products from the Marsa el Brega site.

Commenting on the deal, President and CEO of Yara International, Thorleif Enger, said: "With our new partnership with The National Oil Corporation of Libya 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."