Cairo--(Marketwired - Aug 7, 2013) -
Amsterdam, the Netherlands / 7 August 2013 8:30 AM
Egyptian Fertilizer Company (EFC) Announces Preliminary Amendment to
Existing Natural Gas Supply Agreement with Egyptian Natural Gas Company
(GASCO)
OCI N.V.'s subsidiary Egyptian Fertilizer Company (EFC) announced today
that it has reached a preliminary agreement on the amendment to its
existing natural gas supply agreement with the Egyptian Natural Gas
Company (GASCO). The amendment comes after months of negotiations and
serves as a crucial milestone in ensuring a reliable natural gas supply
to the plant moving forward.
In June 2011, Egyptian Natural Gas Holding Company (EGAS) and GASCO
commenced arbitral proceedings under the auspices of the Cairo Regional
Centre for International Commercial Arbitration (CRCICA) against EFC
regarding EFC's long term natural gas supply agreement disputing its
commercial terms. On 16 May 2013, the international arbitral tribunal,
constituted in accordance with the applicable CRCICA arbitration rules,
rendered its award in favour of EFC and concluded that the terms of the
agreement; specifically the contractually agreed-upon natural gas
price and volume of supply are valid, legally binding, and apply to the
exclusion of any contrary pricing decrees. Notwithstanding the final
arbitral award, OCI N.V.'s management recognized that it was in the
best interest of both parties to reach an amicable settlement on the
basis of new mutually-agreed-upon commercial terms in the form of an
amendment to the gas supply agreement.
The new amendment, which incorporates an increased revenue sharing
mechanism between GASCO as supplier and EFC as buyer and producer of
urea, defines a natural gas pricing formula that is contingent upon a
definite volume of gas supply to the plant as well as the
weighted-average selling price (WAP) of urea. The formula generates, in
case of supply of above 55% and up to 110% of the agreed upon volume of
natural gas, a gradual increase in the price of natural gas linked to
WAPs of urea, which can reach up to a natural gas supply cost of US$
6.6 per mmbtu.
The terms of the new amendment will be applied retroactively starting
July 1, 2013 and the date of the formal signature of the agreement will
be set once all final approvals from the competent authorities have
been received.
OCI N.V has reached similar revised terms of preliminary agreement for
Egypt Basic Industries Corporation (EBIC) and will announce them in due
course.
About OCI N.V.:
OCI N.V. is a global nitrogen-based fertilizer producer and engineering&
construction contractor based in the Netherlands. The Fertilizer
Group owns and operates nitrogen fertilizer plants in the Netherlands,
the United States, Egypt and Algeria and has an international
distribution platform spanning from the Americas to Asia. The
Fertilizer Group ranks among the world's top fertilizer producers with
a fertilizer production capacity of nearly 7 million metric tons. The
Construction Group provides international engineering and construction
services primarily on infrastructure, industrial and high-end
commercial projects in the United States, Europe, the Middle East,
North Africa and Central Asia for public and private clients. The
Construction Group ranks among the world's top global contractors. OCI
N.V. employs more than 75,000 people in 35 countries around the globe
and is listed on the NYSE Euronext in Amsterdam.
For additional information contact:
Investor Relations For additional information on OCI N.V.:
Department:
www.ocinv.nl
Omar Darwazah
Email: Mijnweg 1,
odarwazah@orascomci.co.uk 6167 AC Geleen,
The Netherlands
Erika Wakid
Email:
ewakid@orascomci.co.uk OCI N.V. stock symbols: OCI / OCI.NA /
OCI.AS / OCINY
Hassan Badrawi
Director
Tel: +202 2461 1036/0727/
0917
Fax: +202 2461 9409
This information is provided by RNS
The company news service from the London Stock Exchange
END
Contact Information:
Contacts:
RNS
Customer
Services
0044-207797-4400
http://www.rns.com