As part of Yara’s continuous efforts to streamline its operations, Yara Industrial has, pursuant to approval by the Norwegian Competition Authorities, sold the oilfield activities of Yara Formates to Norbar Minerals AS, a Norwegian affiliate of the US oil service group M-I SWACO.
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.