meed-logo

line1 line2 line3
SIGN IN / REGISTER

Adnoc completes Fertiglobe stake acquisition

16 October 2024

Register for MEED's 14-day trial access 

Abu Dhabi National Oil Company (Adnoc) has completed the transaction to acquire a majority stake in UAE-headquartered Fertiglobe, the largest nitrogen-based fertiliser producer in the Middle East and North Africa region.

Adnoc has increased its shareholding in Fertiglobe to 86.2% through the acquisition of 50% + 1 share held by Netherlands-based OCI Global, which is backed by Egyptian billionaire Nassef Sawiris. The Abu Dhabi energy giant previously held a 36.2% stake in Fertiglobe.

The remaining 13.8% of Fertiglobe’s shares trade on the Abu Dhabi Securities Exchange following the company's stock listing in October 2022.

Adnoc announced the transaction to become the majority shareholder in Fertiglobe last December. Fertiglobe’s shares were priced at AED3.2 ($0.87) a share, valuing the deal at $3.62bn.

Following the completion of the majority acquisition, “Fertiglobe’s current management team will stay in place”, including Ahmed El-Hoshy in his role as CEO, Adnoc said in a statement on 15 October.

“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,” Adnoc said.

Growing chemicals business

Fertiglobe is the world’s largest seaborne exporter of urea and ammonia combined, exporting to 53 countries with a collective market share of about 10% of global trade in these products.

“The acquisition represents … the expansion of Adnoc’s low-carbon fuels business, and supports its goal to become a top-five global chemicals player,” Adnoc said.

“Fertiglobe will become the platform for Adnoc’s growth in fertiliser and low-carbon ammonia,” Adnoc said in its statement.

Adnoc added it will transfer its stakes in existing and future low-carbon ammonia projects to Fertiglobe “at cost and when ready for startup”, including its two projects in Abu Dhabi and other projects in its global portfolio. Adnoc has yet to specify the low-carbon ammonia and blue ammonia production projects.

MEED understands that the first Abu Dhabi project in question is the blue ammonia facility in the Taziz Industrial Chemicals Zone in Ruwais. Fertiglobe has partnered with South Korea’s GS Energy Corporation and Japanese investment firm Mitsui & Company to build the complex, which will have a production capacity of 1 million tonnes a year (t/y).

In February last year, the joint venture awarded Italian firm Tecnimont the main contract for executing the engineering, procurement and construction works on the Taziz blue ammonia project.

The second Abu Dhabi blue ammonia project that Adnoc could be referring to in its statement is a proposed scheme for which it signed a joint feasibility study agreement with British energy producer BP in May 2022.

Adnoc further said that the two projects in Abu Dhabi will add 2 million t/y of output potential, more than doubling Fertiglobe’s current commercial ammonia capacity of 1.6 million t/y and increasing its total sellable capacity to 8.6 million t/y of net ammonia and urea combined, in addition to other announced global projects.

https://image.digitalinsightresearch.in/uploads/NewsArticle/12735570/main1542.jpg
Indrajit Sen

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Israeli offensive leaves Beirut in limbo

    5 June 2026

     

    Lebanon is being held in economic and political limbo by Israel’s open-ended offensive in the south, which has killed more than 3,500 people since March and is characterised by strategic objectives that offer no clear end in sight.

    Political leaders in Tel Aviv are justifying the operation on the grounds of eliminating Hezbollah – a far‑fetched goal against a dispersed guerrilla organisation, as with Hamas in Gaza – while ignoring overtures from Lebanon’s leadership for a ceasefire.

    The recently formed Lebanese government, meanwhile, continues to look impotent: unable to secure its territory from Israeli incursions or Hezbollah activity, and unable to deliver on promises of stability, reform, IMF funding and reconstruction.

    Echoes of the past

    The overarching shape of Israel’s military campaign is ominously familiar, echoing the 1978, 1982, 1985 and 2006 Israeli invasions of southern Lebanon – all entailing creeping encroachment without strategic resolution.

    Since fighting resumed on 2 March 2026, Israeli forces have gradually pushed north, crossing north of the Litani for the first time since the 2006 Lebanon war and seizing Beaufort Castle above Nabatieh on 31 May.

    Israeli Prime Minister Benjamin Netanyahu has framed the goal as establishing a “security zone” – the same term and concept Israel used to justify the occupation of a roughly 800-square-kilometre belt of southern Lebanon from 1985 to 2000.

    That occupation was a debacle for Israel’s military and ended in unilateral withdrawal.

    Israeli analysts are already drawing the modern parallels as the cost of holding ground in southern Lebanon rises, driven by Hezbollah’s deployment of cheap fibre‑optic first‑person‑view (FPV) drones that inflict a steady drip of Israeli casualties and losses.

    As with Russia in Ukraine, Tel Aviv is being tactically embarrassed by the advent of these fibre‑optic drones, which are immune to jamming and – of particular concern to Israeli forces – are too small to be reliably detected and intercepted by conventional counter‑drone systems.

    This leap in Hezbollah’s operational threat – based on cheap technology that can be locally assembled – has sharply raised the price of maintaining a military presence in the country.

    In an attempt to exact a retaliatory price, Israel’s air strikes rose by 110% between 19-22 May and 23-26 May as Hezbollah’s drone successes accumulated, according to conflict monitor Acled. But the underlying tactical dilemma remains.

    Israeli politicians, irate at the situation, have demanded escalation and intensified strikes on civilian areas, including in Beirut  – only to face US pushback.

    Tehran as the lever

    Planned strikes on Beirut, including on 3 June, have been held off in recent weeks under pressure from Washington after Tehran made Lebanon a bargaining chip in its wider negotiations with the US, repeatedly suspending talks following Israeli escalation in the Levant country.

    Tehran has also gone further than walkouts, warning it could respond directly if Israel strikes Beirut – adding an explicit threat of retaliation to diplomatic pressure.

    With a Gulf ceasefire and the reopening of the Strait of Hormuz both riding on the outcome, Washington is strongly motivated to keep Israel from striking Beirut.

    In this way, Iran is one of the few powers wielding any leverage over Israel’s actions in Lebanon – even if that leverage is a source of discomfort for Lebanon’s leaders, for whom Tehran’s clout contrasts starkly with their own lack of influence.

    That protection nevertheless remains narrowly tied to the Lebanese capital, with Washington turning a blind eye to Israel’s ongoing destruction of civilian infrastructure in Lebanon’s south.

    Within the border belt that Tel Aviv has dubbed the “yellow line” – amounting to about 7% of Lebanese territory – Israeli forces have accelerated the demolition of villages since the April truce and barred residents from returning.

    More than a million people, overwhelmingly Shia from the south and the Bekaa, have been displaced since March, and UN human-rights experts have pointed to the blanket evacuation orders and levelling of housing as mirroring Israel’s conduct in Gaza.

    The Lebanese state remains trapped in inaction, partially of its own making. Beirut was initially close to indifferent to renewed strikes on Hezbollah, whose unilateral re-entry into the war it had condemned for endangering the state.

    But as the strikes have shifted methodically towards civilian areas, Beirut’s restraint satisfies no one: the domestic audience wants protection, while Israel and the US want decisive Lebanese army action against Hezbollah.

    Yet the Lebanese army – still adhering in spirit to the November 2024 ceasefire framework and loath to move seriously against Hezbollah for fear of stoking civil war – has remained aloof from the conflict.

    Parliament speaker Nabih Berri, who is close to Hezbollah and maintains dialogue with the group, says it would honour a genuine ceasefire if only Washington could deliver one.

    But repeated attempts to shore up the ceasefire have remained conditional on the Lebanese army stepping up to rein in Hezbollah, while failing to guarantee an end to Israel’s destruction of civilian structures in areas it is occupying.

    On 3 June, a fourth round of US‑mediated trilateral talks produced a fresh ceasefire announcement, hailed in Washington as a step towards comprehensive peace.

    Yet its conditions – a complete halt to Hezbollah fire, the group’s withdrawal south of the Litani and Lebanese army control of undefined “pilot zones”– merely reiterate past failed protocols. The declaration was unsigned by Hezbollah and unenforceable by Beirut.

    Within hours, Hezbollah leader Naim Qassem rejected the declaration, stating that any ceasefire must cover the south and begin with Israeli withdrawal, not Hezbollah’s.

    Both Israeli strikes and Hezbollah attacks have continued since the ostensible deal.

    Recovery on hold

    The economic cost to Lebanon, meanwhile, compounds by the day. The country entered 2026 already in crisis: cumulative GDP down close to 40% since 2019, the pound down 98%, public debt at 150% of GDP, and reserves as low as $11bn as of June 2025.

    The government of President Joseph Aoun and Prime Minister Nawaf Salam staked its credibility on a long‑deadlocked IMF programme finally unlocking external support. The war has upended this, driving away investment and delaying reform.

    The World Bank’s November 2024 assessment – covering only the previous round of fighting, before the March resumption – placed the economic cost at $14bn and recovery needs at $11bn, figures that the current war is now inflating by the day.

    Lebanon’s Bank Audi has warned of zero growth this year if the war continues, versus a pre‑escalation projection of reconstruction‑led recovery. Tourism, historically a fifth of the economy and the engine of the 2024 rebound, has been the biggest casualty.

    Looking ahead, no reconstruction can be financed while the destruction continues, and no IMF programme can advance while the state cannot ensure stability.

    Iran’s leverage may be keeping the bombs off Beirut, but the south’s entrenchment as a war zone is only deepening – with hopes for recovery receding further with every village levelled.

    While the costly occupation is imposing a rising political price on the Israeli government that may, in time, bring it to an end, this will be little consolation for those displaced – many of whom now have no communities to return to, and homes built over decades that are gone.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17120249/main.gif
    John Bambridge
  • Morocco tenders Falit dam project

    5 June 2026

    Morocco’s Ministry of Equipment & Water has opened an international tender for the construction of the Falit dam in Figuig province.

    According to local media reports, the project has an estimated budget of MD428m ($46m), with commissioning expected between 2029 and 2030.

    The bid submission deadline is 15 July.

    The dam will be built on the Moulouya River north of Bouarfa in eastern Morocco. The roller-compacted concrete structure will be 59 metres high and have a storage capacity of 25 million cubic metres.

    The project is intended to provide drinking water supplies, support agricultural irrigation and enhance flood protection in the region.

    Figuig is one of Morocco’s driest regions. It is also vulnerable to flash floods caused by sporadic but intense rainfall events.

    Reported ministry data indicates that annual flows at the project site can reach 40.8 million cubic metres in wet years. Long-term average flows are estimated at about 10.3 million cubic metres a year.

    The dam will include a spillway and a bottom outlet equipped with a 1,500-millimetre pipe. The outlet will have a discharge capacity of 28 cubic metres a second and will allow the reservoir to be emptied within 15 days if required.

    Morocco dam infrastructure

    The Figuig region is also home to the Kheng Grou dam project, which is designed to have a storage capacity of 1.07 billion cubic metres.

    According to regional project tracker MEED Projects, the dam is on track to be completed by the end of the year.

    Morocco-headquartered Bioui Travaux is the engineering, procurement and construction (EPC) contractor for the project, valued at $96m. 

    Another local firm Novec is acting as the main contractor on the project.

    The Falit dam tender comes as Morocco continues to invest in new dams, desalination plants and water transfer schemes to address growing pressure on water resources.

    The country currently has over $13bn-worth of dam projects under construction, the largest of which is the Ratba dam project in the province of Taounate.

    Construction is also set to begin on the $238m Bou Ahmed Dam project, covering 259 hectares, in the province of Chefchaouen. According to MEED Projects data, this was the only major dam contract awarded last year.

    The joint venture of Societe Generale des Travaux du Maroc and Stam Morocco, a subsidiary of the TGCC group, will carry out EPC works on the project.

    READ THE JUNE 2026 MEED BUSINESS REVIEW – click here to view PDF

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17120660/main.jpg
    Mark Dowdall
  • Saudi Energy commissions 2.5GW battery storage project

    5 June 2026

    Saudi Energy, formerly Saudi Electricity Company, has commissioned a major 2.5GW battery energy storage project across five regions in Saudi Arabia.

    The project, which serves power grids in Riyadh, Rabigh, Dawadmi, Jouf and Qassim, completed all grid-tied charging and discharging tests at the end of May, said Chinese supplier NR Electric in a statement.

    National Grid Saudi Arabia, a wholly owned subsidiary of Saudi Energy, awarded Saudi firm Alfanar Company and China’s BYD Energy Storage the contract to build and install five battery energy storage system (bess) facilities with a total combined installed capacity of up to 2,500MW, equivalent to a rated capacity of up to 12,500 megawatt-hours, in January 2025.

    Alfanar was appointed as the project’s engineering, procurement and construction contractor, while BYD Energy Storage was responsible for the design, supply, supervision of installation, testing and commissioning, and maintenance of the bess plants.

    The 12.5 gigawatt-hour (GWh) project is the world’s largest grid-scale energy storage deployment, requiring 2,364 system cabinets in total.

    NR Electric said it supplied the project’s grid-forming control technology and more than 2,000 power conversion system units.

    The main applications for the planned bess facilities include load shifting, black start, frequency regulation and voltage support.

    They are expected to replace part-load operation of existing power plants by charging and discharging electricity according to system load variations and primary and secondary reserves, among other potential applications.

    Shenzhen-based BYD previously announced that the five bess plants would take its total deployments in Saudi Arabia to about 15.1GWh.

    It deployed its bess products on Saudi Arabia’s first on-grid bess plant in Bisha, one of 17 projects globally with a capacity of over 1GWh that entered operations in 2024.

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17120197/main.jpg
    Mark Dowdall
  • Kuwait prepares to tender refinery project deal

    5 June 2026

    State-owned downstream operator Kuwait National Petroleum Company (KNPC) has announced that it is preparing to tender a contract to develop a gauging system for a tank farm at the Mina Al-Ahmadi refinery.

    The system will replace an older, now obsolete system at the South Liquid Tank Farm.

    The contract will include engineering, procurement, construction, testing and commissioning of the new gauging system.

    KNPC is planning to invite 24 companies to participate in the bidding process.

    These are:

    • JGC Corporation (Japan)
    • Almeer Technical Services Co. (Kuwait)
    • CTCI Corporation (Taiwan)
    • Kellogg Brown & Root (US)
    • Kentz Overseas (UAE)
    • IMCO Engineering & Construction Company (Kuwait)
    • National Petroleum Construction Company (UAE)
    • Sinopec Luoyang Engineering (China)
    • Sinopec Engineering Incorporation (China)
    • Tecnicas Reunidas (Spain)
    • SK Ecoplant (South Korea)
    • Gulf Spic General Trading & Contracting Company (Kuwait)
    • Hyundai Engineering (South Korea)
    • Enppi (Egypt)
    • Hyundai Engineering & Construction (South Korea)
    • Saipem (Italy)
    • Technip Energies (France)
    • Larsen & Toubro (India)
    • Hanwha Engineering & Construction Corporation (South Korea)
    • Sinopec Engineering Group (China)
    • Samsung E&A (South Korea)
    • Daewoo Engineering & Construction (South Korea)
    • Fluor (US)
    • Hyundai Heavy Industries (South Korea)

    If a company has not been included in the list and would like to participate in the tender, it can file a complaint with the chairman of Kuwait’s Higher Purchase Committee within 30 days.

    The Mina Al-Ahmadi refinery has been attacked and damaged as part of the regional war that broke out after the US and Israel attacked Iran on 28 February.

    Several units were shut down at Kuwait’s largest oil refinery after it was hit by drones and fires broke out in the morning of 20 March 2026.

    The refinery normally processes about 730,000 barrels of oil a day.

    Kuwait’s oil and gas sector has been severely disrupted by the ongoing regional conflict, which has led to a dramatic drop in crude exports via the Strait of Hormuz.

    READ THE JUNE 2026 MEED BUSINESS REVIEW – click here to view PDF

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17119568/main.gif
    Wil Crisp
  • Kuwait tenders downstream consultancy contract

    5 June 2026

    State-owned downstream operator Kuwait National Petroleum Company (KNPC) has tendered a consultancy contract focused on a liquid sulphur degassing facility for four sulphur recovery units at the Mina Al-Ahmadi refinery.

    This type of unit removes dissolved hydrogen sulphide and other sulphur compounds from molten sulphur before it is stored, loaded onto trucks, or exported.

    This makes the sulphur safer to handle and reduces emissions.

    A total of 21 companies have been invited to participate in the tender.

    These are:

    • Asprofos Single Member Engineering Societe Anonyme (Greece)
    • Enereco (Italy)
    • EPC Constructions India (India)
    • Engineering for the Petroleum & Process Industries (Enppi) (Egypt)
    • Gulf Spic General Trading & Contracting Company (Kuwait)
    • Heavy Engineering Industries & Shipbuilding Company (Kuwait)
    • ILF Consulting Engineers (Austria)
    • Larsen & Toubro (India)
    • Litwin PEL (UAE)
    • Mott MacDonald (UK)
    • National Petroleum Construction Company (UAE)
    • Penspen International (UK)
    • Petro6 Engineering & Construction (India)
    • Petrocil Engineers & Consultants Pvt. (India)
    • PL Engineering (India)
    • Processes Unlimited (US)
    • Tebodin (Netherlands)
    • Technip Energies France (France)
    • Tecnicas Reunidas (Spain)
    • Triune Energy Services (India)
    • Toyo Engineering Corporation (Japan)

    A pre-tender meeting for the project is scheduled for 8 June 2026, and the bid closing date is 25 June 2026.

    The Mina Al-Ahmadi refinery has been attacked and damaged as part of the regional war that broke out after the US and Israel attacked Iran on 28 February.

    Several units were shut down at Kuwait’s largest oil refinery after it was hit by drones and fires broke out in the morning of 20 March 2026.

    The refinery normally processes about 730,000 barrels of oil a day.

    Kuwait’s oil and gas sector has been severely disrupted by the ongoing regional conflict, which has led to a dramatic drop in crude exports via the Strait of Hormuz.

    READ THE JUNE 2026 MEED BUSINESS REVIEW – click here to view PDF

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17119564/main.gif
    Wil Crisp