Page 10 - EurOil Week 45 2021

EurOil INVESTMENT EurOil

Fertiglobe announces major

profit increase

NETHERLANDS THE Fertiglobe joint venture (JV) between two partners and companies EBIC, EFC, Sorfert
Dutch chemicals manufacturer OCI and Abu and Fertil (formerly ADNOC Fertilizers). At
Dhabi National Oil Co. (ADNOC) this week launch, the partners said Fertiglobe would be the
announced a 2,000% increase in Q3 net profit. largest export-focused nitrogen fertiliser plat-
In a filing to the Abu Dhabi Exchange on form globally, and the largest producer in MENA
November 8, the company said that net profit with an output capacity of 5mn tonnes per year
had risen to $137.7mn during Q3, up from of urea and 1.5mn tpy of merchant ammonia
$6.2mn a year earlier, citing improved margins from facilities in Algeria, Egypt and the UAE.
for ammonia and urea. In October, the company announced that it
On the back of the results, the company had joined forces with Norwegian renewables
increased its dividend guidance from $200mn firm Scatec and the Sovereign Fund of Egypt
to at least $240mn for the second half of 2021, (TSFE) to develop a 50- to 100-MW electro-
which will be payable in April next year. lyser in the North African country that will pro-
The positive results showing comes hot on the duce green hydrogen as a feedstock for green
heels of the company’s successful initial public ammonia.
offering (IPO), which raised $795mn, with the It said that Scatec would build, operate and
JV partners selling just under 13.8% to achieve a majority own the unit with Fertiglobe subsidiary
company valuation of $5.8bn. EBIC signing a long-term offtake agreement for
Investors included Singapore’s GIC sover- hydrogen that will enable it to add 90,000 tpy of
eign wealth fund and Inclusive Capital Partners green ammonia to its product slate. The parties
which committed a combined $150mn as ‘cor- are expected to take a final investment decision
nerstone investors’ before the final pricing was (FID) next year ahead of planned start-up in
announced. 2024.
ADNOC and OCI reduced their individual Ammonia’s role in ADNOC’s strategy
shareholdings by 8% minus one share and 5.8% appears to be significant, with the company
respectively, giving them 36.2% and 50% plus positioning itself to take a leadership position
one share respectively. in a global supply chain that will facilitate the
The Fertiglobe JV was formed in 2019 and transportation of blue and green hydrogen to
comprises the ammonia and urea assets of the consumer markets.™

Deltic closes North Sea farm-

outs to Cairn

UK UK junior Deltic Energy has closed the farm- gas exploration portfolio,” Deltic CEO Graham
out of stakes in five gas licences in the southern Swindells commented in a statement. “Ahead of
Cairn will cover costs North Sea to larger player Cairn Energy, in order completion of the transaction we have already
up to a drill decision. to fund the work needed to reach well decisions. begun working with Cairn to progress activities
Cairn has acquired 60% positions in licences on the licences.”
P2428 and P2567, leaving Deltic with the Deltic noted that a 700-square km 3D seismic
remainder. It has also picked up 70% interests survey had already begun at licence P2428. The
in licences P2560, P2561 and P2562. Cairn will survey, which is targeting the Plymouth Zech-
serve as operator of all five sites. stein Reef prospect, should be completed by
In exchange, Cairn has paid Deltic $1mn to the end of the month, with data delivery in the
cover historic back costs, and will also finance second quarter of next year. It will help de-risk
100% of future work up to a point where deci- drilling at the site.
sions must be made whether to drill at the The deal follows Cairn’s completion of the
licences or give them up. sale of its stakes in the Kraken and Catcher fields
“Completion of this transformational mul- in the North Sea last week to Waldorf Petroleum
ti-licence farm-out marks the formal com- for some $455mn. Explaining the sale, Cairn said
mencement of our partnership with Cairn, the fields were “falling into natural decline” and
which will see significant investment being that the cash raised would help it pursue other
made in Deltic’s strategy Southern North Sea strategic goals. ™

P10 www. NEWSBASE .com Week 45 11•November•2021