Deal marks Apache West Aus­tralia exit

Pilbara News - - Pilbara News - Pe­ter Klinger

■ Nor­we­gian fer­tiliser gi­ant Yara In­ter­na­tional has struck a $US391 mil­lion ($551 mil­lion) deal to buy Apache out of its am­mo­nia joint ven­ture near Kar­ratha.

The deal, last week, will see Yara ac­quire all of Apache Fer­tilis­ers, which in turn owns 49 per cent of Yara Pil­bara Hold­ings.

It marks the com­ple­tion of Apache’s exit from WA, hav­ing sold out of the Wheat­stone LNG project (to Wood­side Petroleum) and its WA gas busi­ness (to Quad­rant En­ergy).

The deal with Yara will give the Nor­we­gians 100 per cent of the 850,000 tonne a year liq­uid am­mo­nia plant on the Bur­rup Penin­sula and a big­ger in­ter­est in the tech­ni­cal am­mo­nium ni­trate plant, which is be­ing built next door and due for start-up early next year.

The liq­uid am­mo­nia plant, which was the brain­child of Pankaj Oswal be­fore he was forced out by Yara and com­pany cred­i­tors, de­liv­ered earn­ings be­fore in­ter­est, tax, de­pre­ci­a­tion and amor­ti­sa­tion last year of $US218 mil­lion.

“We are pleased to se­cure full own­er­ship of the Pil­bara am­mo­nia plant, which is the largest and mode mod­ern am­mo­nia plant in Yara’s port­fo­lio,” Yara chief ex­ec­u­tive Svein Tore Holsether said.

“The Pil­bara as­sets are al­ready op­er­ated by Yara, and there­fore re­quire lim­ited ef­forts to fully in­te­grate.

The in­vest­ment will also yield syn­er­gies within gov­er­nance and tax struc­ture.”

Yara also re­vealed that the gas sup­ply con­tract to am­mo­nia plant, which his­tor­i­cally had come from Apache’s Har­riet joint ven­ture, “con­tains a price step-up ef­fec­tive mid-2016”.

Quad­rant took over the Har­riet field when it bought out Apache ear­lier this year.

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