OCI Global (Euronext: OCI) a leading global producer and distributor of hydrogen products today announced that it has reached an agreement for the sale of 100% of its equity interests in its Clean Ammonia project under construction in Beaumont, Texas (“OCI Clean Ammonia” or the “Project”), to Woodside Energy Group Ltd (“Woodside”) for a total consideration of USD 2.35 billion on a cash-free and debt-free basis (the “Transaction”).
Transaction details
• Under the proposed Transaction, Woodside will acquire 100% of the equity interests in OCI Clean Ammonia. Woodside will pay 80% of the Purchase Price to OCI at closing of the Transaction, with the balance of the Purchase Price payable at Project Completion, defined as completion of the plant according to certain agreed terms and conditions.
• OCI will continue to manage the construction, commissioning and startup of the facility and will continue to direct the contractors until the Project is fully staffed and operational, at which point it will handover to Woodside.
• The Transaction is expected to close in H2 2024, subject to satisfaction of customary closing conditions and receipt of OCI shareholder approval. OCI’s Board of Directors has approved the Transaction and has recommended that its shareholders approve the Transaction.
OCI Clean Ammonia
OCI Clean Ammonia is the world’s first large-scale, low-carbon intensity (“CI”) hydrogen-based greenfield ammonia facility, which began engineering in late 2021, construction in December 2022, and is expected to produce first ammonia in 2025. Offering first-mover advantages including superior construction terms and favorable tax incentives, the Project is a unique collaboration between OCI and Linde that integrates Linde’s low CI hydrogen production and carbon capture technology with OCI’s ammonia production, storage and transportation infrastructure. In addition, Linde has contracted with ExxonMobil the CO2 transportation and sequestration infrastructure.
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Submitted By: Waterworth, Rebecca,Associate Director, Camarco, an APCO Company rebecca.waterworth@camarco.co.uk
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