NSIA Signs Landmark Agreement for $1.4 Bil Petchem Plan with Morocco

Thursday, March 4, 2021

The Nigeria Sovereign Investment Authority (NSIA) has signed pacts with the OCP of Morocco, Nigerian National Petroleum Corporation (NNPC) and some other parties for the development of a $1.4 billion plant to produce ammonia and diammonium Phosphate. Additional agreements for natural gas utilization were also executed.

Among the parties to the agreements are the Nigerian Content Development & Monitoring Board (NCDMB), GACN (Gas Aggregation Company Nigeria Limited), Akwa Ibom State Government, the Fertilizer Producers & Suppliers Association of Nigeria (FEPSAN) and Mobil Producing Nigeria (MPN).

Overall, 5 agreements were executed:

A Memorandum of Understanding (MOU) between Nigeria Sovereign Investment Authority (NSIA), OCP Africa and the Fertilizer Producers and Suppliers Association of Nigeria (FEPSAN) to commit to the second phase of the Nigerian Presidential Fertilizer Initiative (PFI II).
A Shareholders Agreement (SHA) between the NSIA and OCP Africa for the creation of the Joint Venture Company (JVC) which will oversee the development of an industrial platform that will produce ammonia and fertilizers in Nigeria.
An MOU between NSIA, OCP Africa and the Akwa Ibom State in Nigeria on land acquisition, administrative facilitation, and common agricultural development projects in the Akwa Ibom State.
An MOU between NSIA, OCP Africa, and the Nigerian National Petroleum Corporation (NNPC), to evaluate the opportunity of an equity investment by the NNPC in the JVC and for its support on gas.
A Framework Agreement between NSIA, OCP Africa, Mobil Producing Nigeria (MPN), the NNPC and the Gas Aggregation Company Nigeria (GACN) on gas supply for the MPI.

Timipre Sylva, Minister of State for Petroleum and head of the Nigerian delegation said, “President Buhari is very committed to actualization of this project. He has mandated the Ministry of Petroleum Resources and all its agencies, notably the NNPC, DPR, NCDMB and all other government agencies to give maximum support for this project.”

Chairman and CEO of OCP, Dr. Terrab said, “Ultimately, these agreements will strengthen the partnership between the NSIA and OCP Group and the different institutions in the gas industry in Nigeria.

“The outcome of the agreements will translate to knowledge transfer and broader economic opportunities as we build out the industrial platform. The platform will leverage the best of Nigerian and Moroccan natural resources, namely the Nigerian gas and the Moroccan phosphate and create a new basis for stronger ties.”

Uche Orji, CEO, NSIA said, “The project forms a key part of NSIA’s gas industrialisation strategy and will deepen intra-continental trade which is essential to Africa’s development and economic renaissance.

“The project will explore increased levels of synergy between NSIA and OCP and the partners to the transactions and ultimately ensure that Nigeria builds an industrial base that is sustainable and complementary to mutual objectives of developing the agriculture sector in Nigeria.”

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Petroleum Africa

NSIA Signs Landmark Agreement for $1.4 Bil Petchem Plan with Morocco

Petroleum Africa On-The-Go

NSIA Signs Landmark Agreement for $1.4 Bil Petchem Plan with Morocco

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