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 2H24, 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 is a large-scale, low-carbon intensity hydrogen-based greenfield ammonia facility, which began engineering in late 2021, construction in December 2022, and is expected to produce first ammonia in 2025.
Nassef Sawiris, Executive Chairman of OCI commented: "We are exceptionally proud to have put in motion on a global scale the first FID'd blue ammonia project, with first production expected in less than a year from now. This pioneering investment will contribute to the global availability of low-carbon intensity ammonia, with significant potential to reduce carbon emissions in hard-to-abate sectors, including existing markets in fertilizer and industrial sectors, as well as in new applications in power and shipping. We are confident that in Woodside we have found the rightful custodian for this landmark asset and its talented employees. Under Woodside's leadership, OCI Clean Ammonia will play a vital role in the global energy transition, delivering new energy products and lower carbon services to reduce Woodside's customers' emissions globally."