Rabat - Morocco’s Cherifien Office of Phosphates (OCP) has agreed to explore a joint venture with Abu Dhabi National Oil Company (ADNOC) of the UAE to build two fertilizer production plants, one in Morocco and one in the UAE.
Rabat – Morocco’s Cherifien Office of Phosphates (OCP) has agreed to explore a joint venture with Abu Dhabi National Oil Company (ADNOC) of the UAE to build two fertilizer production plants, one in Morocco and one in the UAE.
The agreement follows a December deal in which ADNOC, the world’s greatest sulphur exporter, agreed to provide the resource to OCP, the world’s greatest sulphur importer.
The joint venture will assure the two firms’ global market reach and will accelerate the execution of both ADNOC and OCP’s international strategies.
ADNOC CEO Dr. Sultan Al Jaber said, “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.”
ADNOC said the proposed joint venture will build on both companies’ competitive advantages. ADNOC specializes in sulphur production, ammonia, gas and shipping, while OCP has large phosphate resources, fertilizer expertise and a marketing network.
The approach will enable ADNOC to increase its production by 50% from its current level of 7 million tons of sulphur a year, and hopes to increase both its gas production and sour gas production.
OCP has engaged in a large-scale development program that will enable it to capture a share in the world’s growing demand for fertilizers. The first phase of the program was achieved this year and has brought the group’s existing fertilizer capacity to 12 million tons and its phosphate rock export capacity to over 18 million tons.