Woodside is targeting first ammonia production from 2025 and lower carbon ammonia from 2026 following commencement of CCS operations. (Source: Shutterstock)
Australia’s Woodside has closed its $2.35 billion cash acquisition of OCI NV’s clean ammonia project in Beaumont, Texas. Woodside closed the acquisition in September, the company said in an Oct. 15 third quarter earnings release.
Woodside entered the deal as it positions itself for a growing lower-carbon ammonia market. Under the transaction, Woodside acquired 100% of the equity of OCI Clean Ammonia Holding BV, which indirectly wholly owns the project, from OCI NV.
The acquisition price includes capex through completion of phase 1 of the project. OCI is continuing to manage the construction of the project under a construction management agreement. Woodside is targeting first ammonia production from 2025 and lower carbon ammonia from 2026 following commencement of CCS operations.
On Oct. 4, Woodside reported that an OCI construction contractor died in an accident. Subsequent media reports indicated that the worker had fallen to his death.
“We would like to acknowledge the tragic death in early October of an employee of one of the construction contractors at our Clean Ammonia Project in Beaumont, Texas,” Woodside CEO Meg O’Neill said.
“Safety is our top priority. We are taking steps to understand the circumstances around what occurred and are working closely with local authorities, OCI and the contractor company.”
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