DOHA: Industries Qatar (IQ) shareholders gave their approval in an Extraordinary General Assembly on Sunday for the company to purchase a 25 per cent stake in Qatar Fertiliser Company (QAFCO) from Qatar Petroleum (QP).
Minister of State for Energy Affairs and IQ Chairman and Managing Director H E Saad bin Sherida Al Kaabi said: “The proposal to purchase this stake in QAFCO is consistent with IQ’s strategy and continued efforts to build its presence and add value across the downstream sector using the free cash flows available in an efficient and effective manner that is aligned with our central strategy and core business.”
He added: “The transaction would make IQ the sole proprietor of QAFCO’s share capital with full control over Qatar Fertiliser Company and therefore would provide IQ an opportunity to make strategic decisions. On the other hand, the company will also look for more opportunities to further enhance its position in the downstream sector.”
Date of transaction
The effective date of the transaction would be 1 January, 2020, until expiry of the new Gas Sale and Purchase Agreement (GSPA ) on 31 December 2035. The 25 per cent stake in QAFCO would return to QP at the end of the term for nil consideration.
As part of this transaction, with effect from 1 August, 2020, QAFCO has entered into a new GSPA with QP until 31 December, 2035, covering all the gas requirements for QAFCO Trains 1-6, IQ said.