Egyptian billionaire Nassef Sawiris’ OCI to sell Texas project to Woodside for $2.35 billion

Omokolade Ajayi -

Key Points

  • OCI Global is selling its Beaumont clean ammonia project to Woodside Energy for $2.35 billion, part of a strategy to streamline its assets.
  • The deal, expected to close in late 2024, is cash-free and debt-free, with Woodside paying 80% upfront and the rest upon project completion.
  • This sale aligns with OCI’s focus on long-term growth and decarbonization, following its $3.6 billion sale of Iowa Fertilizer Company.

OCI Global, a major producer and distributor of nitrogen and methanol products led by Egyptian billionaire Nassef Sawiris, is set to sell its OCI Clean Ammonia project in Beaumont, Texas, to Australian energy giant Woodside Energy Group for $2.35 billion.

The sale is part of OCI Global’s strategy to streamline its asset portfolio. The agreement follows a competitive bidding process and includes Woodside acquiring full equity in the 1.1 million metric tonne-per-year clean ammonia project, currently under construction.

Expected to close in the second half of 2024, the $2.35-billion deal is structured as cash-free and debt-free, with Woodside paying 80 percent of the price upfront. The remaining balance will be paid upon project completion.

The transaction requires customary closing conditions and OCI shareholder approval. OCI will manage the project’s construction and startup, transitioning operations to Woodside once fully operational.

Nassef Sawiris’ vision for OCI’s role in global decarbonization

Nassef Sawiris, OCI’s executive chairman, expressed confidence in the deal, stating, “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.”

He highlighted the project’s importance in the broader context of global decarbonization, noting that the clean ammonia produced by the facility has significant potential to reduce carbon emissions across various hard-to-abate sectors, including fertilizers, industrial markets, power generation, and shipping.

OCI’s broader corporate strategy and recent moves

OCI’s recent move is part of its strategy to focus on long-term growth and sustainability. By selling the Beaumont project to Woodside Energy, OCI sharpens its focus on decarbonizing energy-intensive industries while ensuring the project’s continued success.

This follows OCI’s recent actions, including the $3.6 billion sale of its 100 percent stake in Iowa Fertilizer Company to Koch Industries in December 2023. That deal coincided with Sawiris relocating his family office to Abu Dhabi, highlighting OCI’s shift towards Middle Eastern opportunities and lower-carbon initiatives.

OCI expands in energy transition strategy

Under Nassef Sawiris’ leadership, OCI has grown into a global player with a production capacity of 17.2 million metric tons per year across four continents. This includes hydrogen-based products like nitrogen fertilizers, methanol, biofuels, and more.

The Beaumont sale reflects OCI’s strategy to monetize high-value assets while reinforcing its role in the global energy transition. The transaction highlights OCI’s commitment to decarbonizing industries and delivering value to shareholders.