UAE: Fertiglobe becomes ADNOC’s platform for low-carbon ammonia growth globally
ADNOC has announced the completion of its acquisition of OCI Global’s 50% + 1 shareholding in
Fertiglobe, increasing its share in the Company to 86.2%, with 13.8% remaining in free float onthe Abu Dhabi Securities Exchange ('ADX'). Fertiglobe is the world’s largest seaborne exporter of urea and ammonia combined, exporting to 53 countries with a ~10% collective market share of global trade in these products.
ADNOC Acquires Majority Stake in Fertiglobe
The acquisition represents another significant milestone in ADNOC’s ambitious chemicals growth strategy, the expansion of its low-carbon fuels business, and supports its goal to become a top five global chemicals player.
Fertiglobe: A Global Leader in Urea and Ammonia Export
Fertiglobe will become the platform for ADNOC’s growth in fertilizer and low-carbon ammonia. To deliver value accretive and disciplined growth for Fertiglobe, ADNOC will transfer its stakes in existing and future low-carbon ammonia projects to Fertiglobe at cost and when ready for startup, creating a world-class growth platform for low-carbon ammonia as a key energy transition fuel.This includes its two lower carbon ammonia projects in Abu Dhabi and other projects in its global portfolio. On a consolidated basis, the two projects in Abu Dhabi would add ~2 mtpa, more than doubling Fertiglobe’s current merchant ammonia capacity of 1.6 mtpa and increasing its total sellable capacity to 8.6 mtpa of net ammonia and urea combined, in addition to other announced global projects.
His Excellency Dr. Sultan Ahmed Al Jaber, ADNOC Managing Director and Group CEO, said: 'ADNOC’s majority shareholding in Fertiglobe marks another milestone in the delivery of our ambitious international chemicals growth strategy and goal to become a top five chemicals player.
Fertiglobe is a world-class company, and it will be the vehicle through which ADNOC advances its low-carbon ammonia business, supporting our efforts to enable a just, orderly, and equitable global energy transition. We see significant growth opportunities for Fertiglobe and I am confident that under the continued and dedicated leadership of Ahmed El-Hoshy, the company will deliver greater value for its shareholders.'
Fertiglobe’s current management team will stay in place, reflecting ADNOC’s confidence in their expertise and leadership, including Ahmed El-Hoshy in his continued role as Fertiglobe’s CEO. Ahmed El-Hoshy spent 15 years growing OCI’s US and European business in ammonia and methanol via greenfields, brownfields and acquisitions generating significant value for shareholders by leading recent divestments.
Ahmed El-Hoshy commented: 'The successful completion of the ADNOC transaction is a historic milestone for Fertiglobe, reinforcing the positive long-term outlook for our business and unique market position, while elevating our future ambitions.
Positioned as the vehicle of ADNOC’s plans to establish a global growth platform for ammonia, Fertiglobe is poised to meet the increasing global demand for low-carbon solutions and bring us closer to a more sustainable future.
We look forward to joining ADNOC’s integrated ecosystem and unlocking the full potential of our product portfolio while maximizing shareholder value and maintaining our commitment to balancing disciplined growth with dividend distributions.'
Fertiglobe will continue to grow its low-carbon fuels business following its success in the recent H2Global bid where it secured €397 million of renewable ammonia offtake to Europe at a delivered price of €1,000 per ton until 2033 in a first-of-its kind contract globally. The limited capital expenditure requirements for this project lead to attractive returns for the company.
Robust double-digit IRRs for all future growth projects will be the minimum target for the company as it seeks disciplined and value accretive growth to capitalize on the expected global growth in low-carbon ammonia demand to 24 million tons by 2032, from close to zero now.
Expected market tailwinds from increasing applications for low-carbon ammonia will see demand growth exceed supply growth by an estimated 11 million tons up to 2032, according to industry consultants. ADNOC aims to capture 5% of the global low-carbon hydrogen market by 2030 in support of the UAE’s National Hydrogen Strategy. Fertiglobe announced that it will share a detailed value creation and growth strategy during its Capital Markets Day in Q1 2025.
Egypt-Saudi Arabia electricity interconnection in June 2025
Egypt's PM highlighted the project’s importance during a weekly press conference, underlining the government’s commitment to pursuing renewable energy projects and the importance of joint investments in the industrial sector Egypt and Saudi Arabia have taken a significant step in strengthening their energy ties with the successful completion of the first phase of the Egyptian-Saudi electricity interconnection project, which will be operational by May or June 2025. Prime Minister Mostafa Madbouly highlighted the project’s importance during a weekly press conference, underlining the government’s commitment to pursuing renewable energy projects and the importance of joint investments in the industrial sector. “The project will have a capacity of 1,500 megawatts and facilitate energy exchange between both countries,” Madbouly said. “It will be a major milestone, with a total capacity of 3,000 megawatts, which will surpass the total regional energy capacity of GCC countries.” The announcement came following a summit in Cairo on Tuesday between Egyptian President Abdel Fattah Al-Sisi and Saudi Crown Prince Mohammed bin Salman, aimed at bolstering coordination between the two nations across all fields, including politics, foreign affairs and regional issues. Madbouly welcomed the signing of the agreement establishing the Egyptian-Saudi Supreme Coordination Council. The council, headed by the leaders of both nations, will involve ministers from each country and serve as a platform for coordination and collaboration. “This council is a crucial mechanism for comprehensive high-level coordination,” Madbouly said. “It will play a key role in strengthening strategic ties between both nations and fostering a significant leap in relations.” The summit also saw the signing of a mutual investment protection agreement, which aims to facilitate and encourage mutual investments while ensuring their protection. “We were able to achieve this in a very short period of time,” Madbouly said, adding that the agreement will be vital in boosting Saudi investments in Egypt. Speaking about the summit, Madbouly emphasised the significance of the event amid volatile regional developments. “This event conveyed crucial messages,” he said. “Discussions focused on regional developments and the need for comprehensive coordination between Egypt and Saudi Arabia to address rapid changes.” He also stressed the importance of both nations’ role as pillars of the Arab and Islamic world, saying they play a significant role in influencing the region. Discussions extended beyond regional developments to address specific challenges in the region, including the conflicts in Gaza and Southern Lebanon. “Both Egypt and Saudi Arabia share a unified vision regarding these crises, emphasizing the need for joint efforts to prevent the spread of conflict and facilitate peaceful resolutions,” Madbouly said. In addition to the agreements, Madbouly highlighted the importance of Egypt’s proactive approach to addressing various scenarios within the region, prioritising the needs of its citizens. “We are putting all possible scenarios in place,” he said. “The Egyptian state will not engage in war unless its borders or national assets are directly threatened.” He stressed that the government’s approach is not meant to instill fear but rather to offer transparency and accountability. Madbouly also provided updates on the Egyptian economy, highlighting the successful completion of the first phase of the Egyptian- Saudi electricity interconnection project, which will be operational by May or June 2024. He also shared news of the imminent commencement of the trial operation of the Grand Egyptian Museum. This monumental project, closely monitored by President El-Sisi, is poised to become a global landmark, showcasing Egypt’s legacy to the world. “The museum will contribute to attracting a significant influx of foreign tourists once fully operational,” Madbouly said. Madbouly concluded his address by highlighting the importance of Egyptians remaining vigilant and united in the face of unprecedented regional challenges. He assured citizens that the nation will remain a safe haven and a beacon of stability in the region.
Egypt: TAG Oil, update on operations and strategic new acquisition
TAG Oil has provided an update on operations and a strategic new Egypt acquisition to expand unconventional and conventional acreage position.
CURRENT OPERATIONS – Badr Oil Field ('BED-1 Concession')
Production from the BED4-T100 ('T100') horizontal well is averaging 200 barrels of fluid per day and 35 percent water. Operation of the T100 well has been intermittent for the last two months as the reservoir extent was assessed through pressure build-up analysis and the lift system optimized.
The T100 well initially produced under natural flow and subsequently with a jet pump to recover the large volumes of fracture fluid containing sand. The T100 well is now equipped with a sucker rod pump for long term stable production.
Cumulative oil production of the T100 well to date is in excess of 15,000 barrels and shipments have commenced to third party facilities. Further evaluation by the Company is also underway of fluid samples, drill cuttings, and tracers as they flow back, to inform performance of stimulated sections along the horizontal lateral and further optimization potential on the T100 well.
With the successful proof of concept of producing commercial oil volumes from the unconventional Abu Roash 'F' reservoir ('ARF') in the BED-1 Concession, current development plans include returning the previously completed and produced BED1-7 vertical well to production following an extended pressure build-up analysis.
The well will be set up with a sucker rod pumping system, similar to the T100 well, during the fourth quarter. In addition, several new drilling locations have been identified for an additional one or two vertical wells in Q1-2025 targeting high intensity natural fractured areas that can potentially produce at good initial oil volumes.
Planning of a second horizontal well is also underway and is planned for drilling in Q2-2025. Please refer to the Company’s updated corporate presentation at www.tagoil.com.
NEW EGYPT ACQUISITION – Significantly Expanding TAG Oil’s Acreage Footprint
TAG Oil is pleased to announce that it has received a 'No Objection Letter' approval from an industry operator in Egypt to the Company’s proposal to acquire a significant interest in their sizable concession in the Western Desert, Egypt.
TAG Oil engaged in evaluating the Concession earlier this year and submitted a binding proposal in the second quarter. The farm-in agreement contemplates standard farm- in terms and is subject to certain conditions and other regulatory approvals. The target Concession covers an area of approx. 2,000 km2 (512,000 acres) in the Western Desert, nearly 20 times larger than the 26,000-acre BED-1 Concession. Of specific interest is the unconventional ARF oil formation that is present covering a large portion of indications of very good ARF reservoir properties, similar to the estimated oil-initially-in-place of 532 MMbbl assigned to the play (1).
Completing this acquisition will expand TAG Oil’s footprint on TAG Oil engaged in evaluating the Concession earlier this year and submitted a binding proposal in the second quarter. The farm-in agreement contemplates standard farm- in terms and is subject to certain conditions and other regulatory approvals. The target Concession covers an area of approx. 2,000 km2 (512,000 acres) in the Western Desert, nearly 20 times larger than the 26,000-acre BED-1 Concession. Of specific interest is the unconventional the targeted Concession with BED-1 Concession, which has ARF unconventional resource this significant unconventional resource play in Egypt, as well as adding immediate conventional production and upside in proven reservoirs. The area has excellent coverage of 2-D and 3-D seismic and contains several producing and available oil wells with upside potential for completion and production optimization in conventional light oil reservoirs. Several prospective drilling locations and side-track opportunities have also been identified on 3-D seismic. The Company will continue to provide updates on the approval process and details of the final definitive agreement as they become available. (1) Source: Independent resource evaluation of the ARF formation in BED-1 Concession dated November 21, 2022, prepared by independent qualified reserves evaluator, RPS Energy Canada Ltd., with an effective date of March 31, 2022.
Oil steadies, but on track for biggest weekly loss in over a month
Crude oil futures steadied on Friday after strong U.S. retail sales data and the emergence of more fiscal stimulus to boost China's economy, though prices were still headed for their biggest weekly loss in more than a month.
Brent crude futures gained 7 cents, or 0.09%, to $74.52 a barrel by 0848 GMT, while U.S. West Texas Intermediate crude was at $70.74 a barrel, up 7 cents, or 0.10%.
Both contracts settled higher on Thursday for the first time in five sessions after data from the Energy Information Administration (EIA) showed that U.S. crude oil, gasoline and distillate inventories fell last week.
Brent and WTI are set to fall about 6% this week, their biggest weekly decline since Sept. 2, after OPEC and the International Energy Agency cut their forecasts for global oil demand in 2024 and 2025 and concerns eased about a potential retaliatory attack by Israel on Iran that could disrupt Tehran's oil exports.
IG market strategist Yeap Jun Rong said while oil prices remained subdued on Friday, there were signs of near-term stabilisation after the market factored in fading geopolitical risks over the past week.
"The recent run in stronger-than-expected US economic data does offer further relief around growth risks, but market participants are also side-eyeing any recovery in demand from China, given recent stimulus unleash," he said in an email.
U.S. retail sales increased slightly more than expected in September, with investors still pricing in a 92% chance for a Federal Reserve rate cut in November. FEDWATCH/
Meanwhile, China's central bank rolled out two funding schemes that will initially pump 800 billion yuan ($112.38 billion) into the stock market through newly-created monetary policy tools.
This follows slow third-quarter economic growth for the world's top oil importer, though consumption and industrial output figures for September beat forecasts.
China's refinery output also declined for the third straight month as weak fuel consumption and thin refining margins curbed processing.
Markets, however, remained concerned about possible price spikes given simmering Middle East tensions, with Lebanon's Hezbollah militant group saying on Friday it was moving to a new and escalating phase in its war against Israel after the killing of Hamas leader Yahya Sinwar.
Geopolitical risks, such as developments in the Middle East, will continue to drive fears of supply disruptions and in turn short-term spikes in oil prices, said Priyanka Sachdeva, senior market analyst at Phillip Nova.