OCI Global Achieves Major Milestone with Woodside Partnership
OCI Global Successfully Completes Sale of Clean Ammonia Project
OCI Global, a prominent player in the hydrogen production industry, has recently announced the completion of a significant transaction involving the sale of its Clean Ammonia project. This project, which has a capacity of 1.1 million metric tonnes and is currently under construction, was sold to Woodside Energy Group Ltd, marking a critical move in OCI's strategic journey.
The Details of the Transaction
The deal, valued at approximately USD 2.35 billion on a cash-free and debt-free basis, follows a rigorous competitive process. This milestone not only underscores OCI's commitment to enhancing shareholder value but also highlights their capability in managing high-stakes transactions effectively.
Impact on Shareholder Value
This closing signifies a meaningful step in OCI's plan to unlock further value for its shareholders. The capital generated from this sale, alongside proceeds from previous transactions, is expected to significantly contribute to OCI's ability to execute its capital allocation priorities.
Strategic Value Creation and Future Plans
Following the completion of this sale, OCI has indicated its intention to continue overseeing the construction, commissioning, and startup of the facility. The aim is to begin ammonia production as early as 2025, transitioning to lower carbon ammonia by 2026. The financial structure of the transaction includes an all-cash consideration encompassing projected capital expenditure through the completion of the first phase.
Commentary from Leadership
Nassef Sawiris, Executive Chairman of OCI, expressed enthusiasm about the closing of the Clean Ammonia transaction. He emphasized that this step not only showcases OCI's unwavering commitment to creating shareholder value but also reflects their innovation-driven approach to business.
OCI's Business and Future Direction
OCI is recognized globally for its leadership in nitrogen, methanol, and hydrogen sectors, contributing actively to the decarbonization of energy-intensive industries. With production facilities spanning four continents, the company boasts a robust capability that amounts to approximately 13.5 million metric tonnes per year of hydrogen-based products.
About OCI Global
Headquartered in the Netherlands and operating on Euronext, OCI's mission centers on innovation in the fields of fertilizers, biofuels, and various hydrogen applications. As it continues to drive its operations toward a more sustainable future, OCI aims to create strategies that deliver both business success and environmental benefits.
Frequently Asked Questions
What was the sale price of the Clean Ammonia project?
The project was sold for approximately USD 2.35 billion on a cash-free and debt-free basis.
Who purchased the Clean Ammonia project from OCI?
The Clean Ammonia project was sold to Woodside Energy Group Ltd.
When does OCI expect to begin ammonia production?
OCI targets to start ammonia production by 2025, with lower carbon ammonia to follow in 2026.
What is OCI’s role after the sale?
OCI will continue to manage the construction, commissioning, and startup of the facility until provisional acceptance is achieved.
How does this sale impact OCI's shareholders?
The transaction is expected to enhance shareholder value significantly by unlocking capital for future investments and dividends.
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