The deal combines Adnoc’s fertilizer business with OCI’s Middle East and North Africa nitrogen fertilizer platform. The resulting entity will have the capacity to produce five million tons of urea and 1.5 million tons of sellable ammonia annually.
Based on 2018 pro forma figures, the combined business is expected to generate annual revenues of $1.74 billion. Under the terms of the agreement, OCI will hold a 58 percent stake in the joint venture, while Adnoc will own the remaining 42 percent.
The partnership is designed to expand market access for both companies and strengthen their global market share. It will be supported by a robust storage and distribution network, with access to strategic ports across the Mediterranean, the Red Sea, and the Arabian Gulf.
OCI’s total global production capacity stands at approximately 14 million metric tons per year, covering nitrogen fertilizers, methanol, diesel exhaust fluid, and other agricultural and industrial products.
Its MENA operations include Egyptian Fertilizer Company, a 60 percent stake in Egypt Basic Industries Corporation, a 51 percent stake in Algeria-based Sorfert, and a global trading platform headquartered in the UAE. Together, these facilities are capable of producing up to 3.2 million tons of ammonia and 2.9 million tons of urea annually.
The joint venture will be headquartered in Abu Dhabi Global Market and governed by a 10-member board, with six representatives from OCI and four from Adnoc. Nassef Sawiris will assume the role of chief executive officer of the new entity.
Adnoc Group CEO and UAE Minister of State, Dr. Sultan Ahmed Al Jaber, said the partnership would enhance the profitability and cash flow of Adnoc’s fertilizer portfolio while supporting the company’s strategy to attract investment to Ruwais, home to some of the UAE’s key gas resources.
The move aligns with Adnoc’s broader push into downstream operations, including chemicals and refining, as part of its diversification strategy. Last year, the group also acquired a 33 percent stake in a fertilizer plant operated by Total.
