ADNOC and OCP Broaden Their Partnership and Intend to Develop a Global World-Class Fertilizers Joint Venture

• Proposed joint venture looks to combine ADNOCÔÇÖs world-scale sulphur
  production, ammonia and gas expertise, and logistics with OCPÔÇÖs access
  to the worldÔÇÖs largest phosphate resources and leading position in the
  fertilizer industry
• This proposed partnership will lead to the phased creation of a joint
  venture company holding assets in both Jorf Lasfar, Morocco, and
  Ruwais, UAE

ABU DHABI, United Arab Emirates–(BUSINESS WIRE)–The Abu
Dhabi National Oil Company (ADNOC) and OCP Group of Morocco (OCP)
have agreed to explore the phased creation of a new global fertilizers
joint venture, in a move that will accelerate the execution of both
ADNOC and OCPÔÇÖs international strategies.

The proposed joint venture will build on both companiesÔÇÖ competitive
advantages, namely ADNOCÔÇÖs world-scale sulphur production, ammonia and
gas expertise, and shipping and logistics network, and OCPÔÇÖs access to
large phosphate resources, its century-long fertilizers know-how and its
marketing network, to develop a new global fertilizers producer. The
proposed partnership will comprise two fertilizer production hubs, one
in the UAE and one in Morocco (utilizing both existing and new assets),
giving the proposed joint venture global market reach.

This proposed project extends the partnership already established
through the existing long-term sulphur offtake agreement that was
announced by the two firms in December 2017. The two companies will work
on developing capabilities that will support this venture, as they
expand their partnership, leveraging their respective strengths and
building their human capital.

The agreement aligns with ADNOCÔÇÖs announced plans to increase production
by at least 50% from its current levels of 7 million tons a year, as it
looks to increase gas production by tapping into vast gas caps and
scaling up sour gas production. OCP has engaged in a large-scale
development program that will enable it to capture its fair share of
growing demand for fertilizers. The first phase of this program was
completed this year and has brought the GroupÔÇÖs existing fertilizer
capacity to 12 million tons, and rock export capacity to over 18 million
tons.

Commenting on the agreement, H.E. Dr. Sultan Ahmed Al Jaber, UAE
Minister of State and ADNOC Group CEO, said: ÔÇ£The proposed joint venture
with OCP Group illustrates ADNOCÔÇÖs intent to maximize the value of all
our resources, as we grow our downstream business, diversify our product
range and increase revenues. 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.

ÔÇ£Importantly, this agreement is aligned with the directives of our
leadership to further build on the existing close relationship and ties
between the United Arab Emirates and Morocco, and we look forward to
building on these firm foundations as we work towards potentially
building a new global fertilizers champion.ÔÇØ

Mr. Mostafa Terrab, OCP Group Chairman and CEO, said: ÔÇ£This
collaboration between our companies brings together the worldÔÇÖs largest
phosphate reserves and the worldÔÇÖs largest sulphur production capacity
and it represents an unprecedented alliance in the industry, providing
the partners with a world-class integrated asset base and complementary
geographic locations. We view this new partnership as a unique
opportunity, in line with our global strategy, that will contribute to
our ability to serve growing demand for fertilizers worldwide.ÔÇØ

The agreement comes as ADNOC, at its Downstream Investment Forum,
unveils its ambition and plans to become a global downstream leader,
enabling it to further stretch the value of every barrel it produces to
the benefit of ADNOC, its partners and the UAE. It aligns with ADNOCÔÇÖs
2030 strategy of a more profitable upstream, more valuable downstream,
more sustainable and economic gas supply, and more proactive, adaptive
marketing and trading. This project further supports ADNOCÔÇÖs downstream
growth plans to create the worldÔÇÖs largest integrated refining and
petrochemicals complex in Ruwais.

ADNOCÔÇÖs Downstream Investment Forum gathered, in Abu Dhabi, over 40
global CEOs and more than 800 senior global business leaders from
diverse industry sectors. At the Forum, ADNOC partners, stakeholders,
customers and suppliers heard details about the companyÔÇÖs new downstream
growth plans as well as new partnership and investment opportunities
available across the expanded ADNOC value chain, as it seeks to redefine
and transform its downstream business.

About ADNOC

ADNOC is a major diversified group of energy and petrochemical companies
that produces about 3 million barrels of oil and 10.5 billion cubic feet
of raw gas a day. Its integrated upstream, midstream and downstream
activities are carried out by 14 specialist subsidiary and joint venture
companies. To find out more visit www.adnoc.ae.
For further information: [email protected]

About OCP

OCP is a global leader in the fertilizer industry, backed by almost a
centuryÔÇÖs production history. OCP has exclusive access to the largest
phosphate rock reserve base in the world. It is one of the lowest cost
producers of phosphate rock in the industry and has become a leading
player in production and trade volumes across the phosphate value chain.
OCP employs 21,000 people and contributes to regional development
through its mining and fertilizer operations, and through its
sustainability program.

For more information visit www.ocpgroup.ma
or http://www.ocpgroup.ma/media/pressroom

*Source: AETOSWire

Contacts

ADNOC
Sean McCarthy, +971564067996
[email protected]