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ADNOC and OCP sign long-term sulphur sales agreement

The Abu Dhabi National Oil Company and the OCP Group of Morocco (OCP) announced today the signing of a long-term sales agreement whereby ADNOC will supply OCP with granulated sulphur.

Under the agreement, ADNOC, the world’s largest exporter of sulphur, will steadily supply OCP, the largest worldwide sulphur importer, until 2025. The two parties agreed to consider a gradual increase of the contracted annual volumes. ADNOC exported more than 2 million metric tons of granulated sulphur to Morocco in 2016.

Abdulla Salem Al Dhaheri, Marketing, Sales and Trading Director at ADNOC, said: “This landmark agreement, which is unique in the sulphur industry, strengthens ADNOC’s position as one of the world’s largest exporters of sulphur. It will reinforce the sustainable supply of sulphur to Morocco and enhance our ability to achieve positive margins.”

Significant synergies exist between ADNOC and OCP, allowing the two companies to explore various opportunities for a larger cooperation.
Mr. Mustapha El Ouafi, Managing Director at OCP, said: “Since 2008, OCP has initiated the largest investment program in the fertilizer industry with the objective of doubling its mining capacity and tripling its fertilizer capacity. Our ambitious program will see OCP further strengthen its position as the world’s largest fertilizer producer and a leading player in the agribusiness value chain. As such, we are committed to further developing a reliable and strategic partnership with ADNOC, the world’s largest sulphur exporter.”
As a by-product of its sour gas operations, ADNOC and partners produce more than 6 million tons of sulphur annually, exporting it to customers from its state-of-the-art sulphur handling facilities in Ruwais. The amount of sulphur available for export will increase over the next decade as ADNOC and partners brings new sour gas projects on line, as part of its plans to achieve gas self-sufficiency by 2030.

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