The Abu Dhabi National Oil Company (ADNOC) and OCP Group of Morocco (OCP) agreed to create a fertilisers joint venture, as part of ADNOCs attempt to diversify its portfolio from oil and gas assets
The venture will combine ADNOC's sulphur production and logistics network with OCP's monopoly over the phosphate business in Morocco.
The companies will establish two fertiliser production hubs, one in the UAE and one in Morocco.
The agreement furthers ADNOC's efforts to diversify its assets from oil and gas to markets such as petrochemicals and fertilisers.
As part of these efforts, the state oil company said it would spend US$45bn over the next five years to boost its refining capacity, giving it a chance to cash in on growing demand for petrochemicals.
“The proposed joint venture with OCP Group illustrates ADNOC’s intent to maximize the value of all our resources, as we grow our downstream business, diversify our product range and increase revenues. The agreement builds on the expanded partnership model we announced last year, as we open our entire value chain to reliable, value-adding, long-term partners, who can complement our capabilities and resources, and enhance our market access," Sultan Ahmed Al Jaber, UAE minister of state and ADNOC Group CEO, said.
“This collaboration between our companies brings together the world’s largest phosphate reserves and the world’s largest sulphur production capacity and it represents an unprecedented alliance in the industry, providing the partners with a world-class integrated asset base and complementary geographic locations. We view this new partnership as a unique opportunity, in line with our global strategy, that will contribute to our ability to serve growing demand for fertilisers worldwide,” Mostafa Terrab, OCP Group chairman and CEO, said.
