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NOC of Libya and Yara of Norway to establish J V
05-01-2007
National Oil Corporation (NOC) of Libya and Yara International ASA of Norway, have signed a Heads of Agreement with the intention to establish a joint venture for production and marketing of mineral fertilizer. The planned joint venture will be owned 50% by each partner and will comprise the ammonia and urea plants located in Marsa el Brega in Libya, presently owned by NOC. The intention is to finalize the negotiations and to establish the new company by the end of 2007.
NOC and Yara have decided to engage in a partnership to further develop the existing production capacity at Marsa el Brega in Libya, and to develop a strategic cooperation for the potential development of further fertilizer projects in Libya.
Dr. Shokri Ghanem / Chairman of NOC said “ This partnership is another example of NOC’s new policy of attracting foreign investment and expertize for the benefit of the Libyan economy. This new cooperation we strongly believe will bring togther a global fertalizer company and a nation
“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,” says President and CEO at Yara International, Thorleif Enger.
The planned joint venture will comprise the ammonia and urea plants located in Marsa el Brega in Libya, which are presently owned by NOC. The existing operations currently produce approx. 700,000 tones of ammonia per year, of which approx. 150,000 tones are available for sale, and 900,000 tones of urea. NOC will supply natural gas and services to the new company. It is intended that Yara will contribute towards a further upgrading of the production assets including building new world scale fertilizer plants and will be appointed the marketer for export of products from the Marsa el Brega site.
About NOC
NOC was established in 1970 to implement the strategy of the Country’s policy in upstream and downstream oil and gas activities. NOC, through wholly and partially owned subsidiaries, runs a network of onshore/offshore oil, gas, and product facilities for domestic and export markets. Presently NOC produces about 1.7 million lbs./day of crude oil and about 2.7 TSCFD of raw gas.
NOC owns 5 petroleum refineries having a total refining capacity of 380.000 bls/day, methanol, ammonia, urea plants, producing 2000 t/day, 2200 t/day and 2750 t/day respectively as well as petrochemical facilities at Ras Lanuf based on Naphtha cracking producing about 330 kt/y Ethylene, 170 kt/y Propylene, 130 kt/y mixed C4’s and 325 kt/y Pyrolysis Gasoline. Part of Ethylene is used to produce about 80 kt/y of LLDPE and 80 kt/y of HDPE.
Also affiliated to NOC is the Libyan Petroleum Institute which carries out research and technical studies related to the oil industry and conducts technical analysis and tests for the various stages of exploration and production of oil and petroleum products to ensure quality control as well as two training institutes the first for basic training and the second for vocational training. More information about NOC can be found at www.noclibya.com
About YARA
Yara International ASA is a leading chemical company that converts energy and nitrogen from the air into essential products for farmers and industrial customers. As the number one global supplier of mineral fertilizers and agronomic solutions, we help provide food for a growing world population. Our industrial product portfolio includes environmental protection agents that safeguard air and water purity and preserve food quality. Yara’s global workforce of 7000 employees represents great diversity and talent enabling Yara to remain a leading performer in its industry.