Hydro signs Memorandum of Understanding

(June 27, 2001) Hydro Agri, Ammonia Trade and Shipping has signed a Memorandum of Understanding with an Australian fertilizer company.

The memorandum was signed with Burrup Fertilizer Pty Ltd, a wholly owned  Australian subsidiary of  India's Oswald Group. It gives Hydro an exclusive right to negotiate an offtake arrangement for 700,000 tons of ammonia to be produced by Burrup's projected plant at Karratha, Australia.

The offtake agreement is to be linked with a sales agreement for ammonia deliveries to Oswald Chemicals and Fertilizers, India, as well as a special ammonia shipping arrangement. A combined offtake, sales and shipping agreement is currently under negotiation and is expected to be finalized early this fall.