Norway’s Yara finalises JV with Libya’s National Oil Corp
09 February 2009 10:21 [Source: ICIS news]
LONDON (ICIS NEWS)--Yara has finalised its long-planned joint venture with Libya’s National Oil Corp (NOC) and the Libyan Investment Authority (LIA), the Norwegian fertilizer major said on Monday.
The venture, called the Libyan Norwegian Fertiliser Co (Lifeco), will be owned 50% by Yara 25% by NOC and 25% by LIA, said a statement released by Yara.
“We are delighted with reaching this milestone. With our commitment to the growth and expansion of Lifeco, the acquisition will be of great benefit to Yara, LIA and NOC,” said Jørgen Ole Haslestad, Yara’s president and CEO.
“Lifeco complements Yara's global commercial activities and provides new investment in Libya as part of Yara's core business,” said Haslestad.
Yara said that NOC has transferred its fertilizer facilities at Marsa El Brega, Libya valued at $225m (€173m), to Lifeco. Yara injected a corresponding amount in cash into the new company, it said.
NOC will supply natural gas to Lifeco under a long-term agreement with a gas price linked to fertilizer prices, Yara said.
Dr Ghanem, NOC’s chairman, said: “Yara's participation in the joint venture will add strength to pursue our current modernisation and expansion plans for our fertilizer industry.
“Because Lifeco's business constitutes Yara's core business, in which it is a global leader, we have found the ideal partner in Yara. I am confident that this is a win-win situation for all Lifeco stakeholders.”
Yara said it will handle all of Lifeco’s urea and ammonia exports.
The existing operations produce approximately 900,000 tonnes/year of urea and 150,000 tonnes/year of merchant ammonia, according to Yara.
Lifeco will embark on a programme to optimise and upgrade its operations. A second phase will aim to invest in new world-scale production facilities as and when new natural gas resources are made available, subject to economic evaluations, according to the statement.
Yara said the company will be headquartered in Marsa El Brega under the leadership of its new CEO, Yara’s Gianni Paci, supported by a joint core management team of NOC and Yara executives.
LONDON (ICIS NEWS)--Yara has finalised its long-planned joint venture with Libya’s National Oil Corp (NOC) and the Libyan Investment Authority (LIA), the Norwegian fertilizer major said on Monday.
The venture, called the Libyan Norwegian Fertiliser Co (Lifeco), will be owned 50% by Yara 25% by NOC and 25% by LIA, said a statement released by Yara.
“We are delighted with reaching this milestone. With our commitment to the growth and expansion of Lifeco, the acquisition will be of great benefit to Yara, LIA and NOC,” said Jørgen Ole Haslestad, Yara’s president and CEO.
“Lifeco complements Yara's global commercial activities and provides new investment in Libya as part of Yara's core business,” said Haslestad.
Yara said that NOC has transferred its fertilizer facilities at Marsa El Brega, Libya valued at $225m (€173m), to Lifeco. Yara injected a corresponding amount in cash into the new company, it said.
NOC will supply natural gas to Lifeco under a long-term agreement with a gas price linked to fertilizer prices, Yara said.
Dr Ghanem, NOC’s chairman, said: “Yara's participation in the joint venture will add strength to pursue our current modernisation and expansion plans for our fertilizer industry.
“Because Lifeco's business constitutes Yara's core business, in which it is a global leader, we have found the ideal partner in Yara. I am confident that this is a win-win situation for all Lifeco stakeholders.”
Yara said it will handle all of Lifeco’s urea and ammonia exports.
The existing operations produce approximately 900,000 tonnes/year of urea and 150,000 tonnes/year of merchant ammonia, according to Yara.
Lifeco will embark on a programme to optimise and upgrade its operations. A second phase will aim to invest in new world-scale production facilities as and when new natural gas resources are made available, subject to economic evaluations, according to the statement.
Yara said the company will be headquartered in Marsa El Brega under the leadership of its new CEO, Yara’s Gianni Paci, supported by a joint core management team of NOC and Yara executives.
source: www.ICIS.com
