OCI Global Completes Sale of Clean Ammonia to Woodside

  • OCI Global ("OCI") announces successful completion of the sale of 100% of its equity interests in its 1.1 million metric tonnes Clean Ammonia project under construction inBeaumont, Texas("OCI Clean Ammonia"or the"Project"), to Woodside Energy Group Ltd ("Woodside")
  • The transaction was valued atUSD 2.35 billionon a cash-free debt-free basis ("Purchase Price") and followed a competitive process
  • The closing marks a significant milestone in OCI's strategy to unlock value for shareholders

AMSTERDAM,Sept. 30, 2024/PRNewswire/ -- OCI Global (Euronext: OCI), a leading global producer and distributor of hydrogen products is pleased to announce the successful closing of the divestment of its Clean Ammonia project inBeaumont, Texasto Woodside Energy Group Ltd, signed on5 August 2024, following the satisfaction of customary closing conditions and receipt of OCI shareholder approval.

OCI will continue to manage the construction, commissioning, and startup of the facility through provisional acceptance[1]("Project Completion") and is targeting production of first ammonia from 2025 and lower carbon ammonia from 2026. The all-cash consideration of approximatelyUSD 2,350 millionis inclusive of capital expenditure through completion of the first phase, withUSD 1,880 millionpaid and the remainingUSD 470 millionto be paid at Project Completion. For more information on the transaction, reference is made to the press release published on5 August 2024.

The Clean Ammonia closing marks a significant milestone in OCI's strategic value creation journey. The expected cumulative crystallization of approximatelyUSD 11.6 billiongross cash proceeds from the recently announced sales of Fertiglobe, IFCO, OCI Clean Ammonia and OCI Methanol affords OCI significant flexibility to deliver on OCI's capital allocation priorities, including deleveraging at a gross level as well as returning a meaningful quantum of capital to shareholders.

Commenting on today's announcement,Nassef Sawiris, Executive Chairman of OCIsaid:"The successful closing of the Clean Ammonia transaction further reinforces OCI's serial commitment to creating value for its shareholders and exemplifies its pioneering spirit. Looking ahead, we will continue to explore value accretive investment opportunities where we can successfully deploy our extensive knowledge, deep operational expertise, and entrepreneurial heritage."

[1]Production of lower carbon ammonia is conditional on supply of carbon abated hydrogen and ExxonMobil's CCS facility becoming operational.

Advisors

Morgan Stanley& Co. International plc is serving as financial advisor to OCI on the Transaction. A&O Shearman and Vinson& Elkins are acting as OCI's legal advisors.

About OCI Global

We are a global leader in nitrogen, methanol, and hydrogen, driving forward the decarbonization of the energy-intensive industries that shape, feed and fuel the world. OCI's production capacity spans four continents and comprises approximately 13.5 million metric tons per year of hydrogen-based products including nitrogen fertilizers, methanol, biofuels, diesel exhaust fluid and melamine. OCI is headquartered inthe Netherlandsand listed on Euronext inAmsterdam.

Learn more about OCI atwww.oci-global.com. You can also follow OCI onLinkedIn.

Contact Details

Sarah Rajani CFA, Global Vice President Investor Relations and Communications

Email:sarah.rajani@oci-global.com 

 

SOURCE OCI Global