Yara Suspects Irregular Payment Over Libya JV Talks

Norwegian fertilizer producer Yara suspects an irregular payment, possibly a bribe, may have been made
in connection with the negotiations preceding the firm's Lifeco investment in Libya.

Norwegian authorities have been notified and an external investigation will be initiated by a Norwegian law firm, Yara said on Wednesday.

"There are indications that there might have been an (irregular) payment before the investment in Libya was made in October 2008," said Yara spokesman Torgeir Kvidal. "It could be a criminal offense, but we have to wait and see what the investigation has to say."

Asked if Yara suspected the transaction to be a bribe, Kvidal said it was one possibility.

Lifeco is a 50-50 joint venture with the state-owned National Oil Corp. of Libya, which was established in February 2009.

The plants, located in Marsa El Brega, about 700 km (435 miles) east of Tripoli, have been closed since February this year due to political unrest in the country.