Woodside Energy Group to acquire 100% of OCI Clean Ammonia Holding B.V.,
- Woodside has entered into a binding agreement to acquire 100% of OCI Clean Ammonia Holding B.V., and its lower carbon ammonia project in Beaumont, Texas (Project) for an all-cash consideration of approximately $2,350 million. The Project is under construction and targets production of first ammonia from 2025 and lower carbon ammonia from 2026. The consideration is inclusive of capital expenditure through completion of the first phase.
- The Project is located on the US Gulf Coast (Beaumont, Texas) and can serve customers domestically and internationally. Phase 1 has a design capacity of 1.1 Mtpa and is under construction. First ammonia production, derived from natural gas, is targeted for 2025. Lower carbon ammonia production, derived from natural gas paired with carbon sequestration, is targeted for 2026 following commencement of CCS operations. The facility is designed to accommodate a second 1.1 Mtpa production train (Phase 2).
- Phase 2 remains pre-final investment decision (FID). Woodside will target FIDreadiness for Phase 2 in 2026 with an expected gross capital expenditure range of $1.2 - 1.4 billion.
- Under the transaction, Woodside will acquire 100% of the equity of OCI Clean Ammonia Holding B.V., which indirectly wholly owns the Project, from OCI N.V. (together with its affiliates: "OCI"). The Project is subject to cost, schedule and performance guarantees from OCI. This means that OCI will manage the construction of the Project through provisional acceptance, will fund Project costs through Project completion and has agreed to liquidated damages for certain delays, reducing cost and schedule risk. The transaction includes the transfer of experienced personnel with start-up, operational, maintenance and technical capabilities for the operation of the asse.