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Libya’s NOC on 25 January said it had cut natural gas supplies to Lifeco, operator of four fertilizer production plants at Marsa al-Brega with 850,000 t/y of urea and 120,000 t/y of ammonia capacity, as a result of dues owed by its JV partner, Norway’s Yara.
NOC said negotiations had been unsuccessful “as a result of Yara’s refusal to assume repayment responsibility” adding the current arrangement was “profitable to Yara, but loss-making for NOC.” NOC says Yara owes it $80mn and owes its subsidiary Sirte Oil Company LD 210mn ($152mn) and €31mn ($35mn).
The JV established in 2009 between Yara (50%), NOC (25%) and Libyan Investment Authority (25% - MEES, 16 February 2009 ), hasn’t made a profit since the 2011 Libyan revolution and has racked up a combined $468mn in loses up to 2016 according to Yara annual reports - no figure was given for 2017. Yara wrote down $112mn of its investment in 2015 ( MEES, 22 May 2015 ). (CONTINUED - 150 WORDS)