Yara announces sale of the oilfield part of Yara Formates
Sep 16, 2004
Yara Formates has identified and developed a strong position in formate-based clear brine fluids for well drilling, completion, workover and construction operations within the petroleum industry. However, as these activities are not core for Yara International, the market opportunities within this segment can not be fully utilized within Yara. Becoming part of a global oil service group, the transferred business will have synergies and market opportunities previously not available in Yara.
Yara Formates, which from today is the new name of Hydro Formates, will have a 10 year supply agreement with Norbar Minerals and supply up to 25,000 tonnes per year of potassium formate (EcoForm®) from the Porsgrunn plant.
Yara's book value of the assets being sold to Norbar Minerals is NOK 21 million. There will be a positive result from the transaction, which will have a limited impact on Yara's consolidated fourth quarter results.
Egil Hogna, Investor Relations
Telephone (+47) 24 15 71 66
Cellular (+47) 90 187 865
Arne Cartridge, Media Relations
Telephone (+47) 24 15 73 01
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Yara International ASA is the world's leading supplier of mineral fertilizers with particular strength in nitrogen based fertilizers. Yara has a local presence in 50 countries worldwide. Yara sells more than 20 million tonnes of mineral fertilizers in more than 120 countries. Yara offers fertilizers meeting the nutrient needs of local crops supported by agronomic advice to make farming more profitable and agriculture more sustainable. Yara has a strong position in industrial markets in Europe as a supplier of nitrogen based chemicals and is the leading supplier of liquid CO2.
M-I Swaco, a leading supplier of drilling and completion fluid systems and services, solids control equipment and waste management services to the worldwide oilfield industry, is owned 60 percent by Smith International, Inc. (NYSE: SII) and 40 percent by Schlumberger Limited (NYSE: SLB).