The Abu Dhabi National oil Company (ADNOC) has signed a long-terms sales deal with Morocco’s OCP Group to supply OCP with granulated sulphur, the company has announced.
ADNOC is one of the world’s largest exporters of sulphur, while OCP is the world’s largest sulphur importer, and under the terms of the agreement the supply will run until 2025. Both parties agreed to consider a gradual increase of contracted annual volumes during the term of the deal.
ADNOC already supplies granulated sulphur to Morocco, exporting 2 million metric tonnes to the North African country in 2016. Abu Dhabi’s overall sulphur production currently stands at 6 million tonnes a year, and has seen its global market share rise from 6 per cent in 2014 to 11 per cent 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.”
Mustapha El Ouafi, managing director at OCP, added: “Since 2008, OCP has initiated the largest investment programme in the fertiliser industry with the objective of doubling its mining capacity and tripling its fertiliser capacity.
“Our ambitious programme will see OCP further strengthen its position as the world’s largest fertiliser producer and a leading player in the agri-business value chain.”