Page 13 - DMEA Week 15 2021

DMEA PETROCHEMICALS DMEA

ADNOC’s listing bent turns to Fertiglobe

MIDDLE EAST REPORTS have emerged that Abu Dhabi Abu Dhabi Crown Prince Sheikh Mohammed
National Oil Co. (ADNOC) and chemicals pro- bin Zayed, vice-chairman of the former Supreme
ducer OCI are considering an initial public offer- Petroleum Council (SPC) when he instructed
ing (IPO) of their Fertiglobe joint venture (JV). ADNOC to “explore potential opportunities in
The news comes as ADNOC is also mulling hydrogen with the ambition to position the UAE
listing its drilling subsidiary and follows a series as a hydrogen leader”.
of successful and highly lucrative moves to Ammonia is seen playing an important role
monetise assets with the company receiving a in the supply chain given its stable properties
short-term cash boost while maintaining con- and the ease with which it can be transported
trol longer term. in contrast to hydrogen. Ammonia can then be
The Fertiglobe JV was formed in 2019 and converted into hydrogen for power at destina-
comprises the ammonia and urea assets of the tion facilities.
two partners and companies EBIC, EFC, Sor-
fert, and Fertil (formerly ADNOC Fertilizers). Egyptian fuel stations
ADNOC holds a stake of 58% in Fertiglobe with In related news, ADQ is joining forces with
OCI holding the remainder. ADNOC in its takeover bid for Egypt’s mili-
At launch, the partners said Fertiglobe would tary-owned Wataniya Petroleum service stations
be the largest export-focused nitrogen fertilizer with the aim of making a stronger offer for the
platform globally, and the largest producer in company, according to local press reports.
MENA with an output capacity of 5mn tonnes ADNOC was reportedly in the process of
per year of urea and 1.5mn tpy of merchant appointing advisors last month, and is compet-
ammonia from facilities in Algeria, Egypt and ing with other GCC players, including state-
the UAE. owned Emirates National Oil Co. (ENOC),
Reuters’ sources said that banks had been Saudi Arabia’s Aldrees Petroleum and Transport
invited to pitch to work on the IPO, with bids Services Co., as well as Egypt’s Qalaa Holdings’
submitted last week and the sale seen raising at Taqa Arabia.
least $1bn. Speaking on condition of anonymity, sources
The timing could hardly be better for the said that the deal is now expected to close in the
listing of a company with significant ammonia second half of 2021 after the Sovereign Fund of
capacity as interest in blue and green hydrogen Egypt (SFE), which is managing the sale, last
and ammonia continues to rise. month changed its sale timeline from the first
The UAE is engaged in ongoing high-level half 2021.
talks with Japan about the establishment of a Wataniya is one of two companies that are
hydrogen supply chain while ADNOC is a sig- kick-starting a privatisation programme of com-
natory, alongside Mubadala Investment Co. panies owned by the military’s National Service
and holding company ADQ, of a memorandum Products Organisation.
of understanding (MoU) to establish the Abu The SFE had previously said it was planning
Dhabi Hydrogen Alliance (ADHA). to retain a 10-20% stake in the companies up
The formation of ADHA marks a significant for sale, with the rest to be sold off to the private
step to fulfil plans first noted in November by sector.™

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