Oman-India fertilizer project foundation stone unveiled 
Oman-India, Economics, 10/3/2003

"Oman-India Fertilizer Company SAOC (OMIFC) held a ceremony to unveil the foundation stone of its Fertilizer plant in the wilayat of Sur today under the auspices of Sayyid Talal bin Tariq al Said," Oman's news agency reported this week.

Oman said the "Omani investors, the PDO, would also make profits from the project. He expected that additional jobs will be available for Omanis seeking employment as a result of building the plant. The Minister said the fertilizer company had already sent 60 Omani nationals for specialized technical training in similar fertilizers plants in India and the project executing contractors employed 600 Omanis. The Minister also noted that project which is located in the Sur would enhance efforts to develop the regions of the Sultanate," the report noted.

Oman said "Sur fertilizer project would cost a total of $968 million. He said the remarkable success in financing the project proved its viability and was evidence of international confidence in the Omani economy... and that the value of the exported products would stand at $245 million in the first year of operation and said that would add substantially to the total value of Omani non oil exports," the report added.

Oman said "the plant when completed, would be able to manufacture 1.6 million tons of urea per year and around 250,000 tons of surplus ammonia and both products would be  exported to India..OMIFCO has been established, as the result of an initiative by the Governments of Oman and India, in order to construct, own and operate a modern world scale two-train ammonia-urea fertilizer manufacturing plant at the Sur Industrial Estate in the Sultanate of Oman," the report added.

The report said "The OMIFCO plant is located on the coastal plain to the north-west of Sur, from Bir Bira towards Qalhat, North-West of Sur. The location of the Plant was chosen by the Government. The reason for this included the location of the necessary gas supply, the proposed industrial use for the coastal plain and the presence of Sur itself. ..The Oman India Fertilizer Company SAOC ("OMIFCO") is owned 50% by Oman Oil Company SAOC ("OOC") and the Indian Farmers Fertilizer Cooperative Limited ("IFFCO") and Krishak Bharati Cooperative Limited ("KRIBHCO"); each having a share of 25%.. The project is being built by a joint venture of Snam-progetti of Italy and Technip - Coflexip of France under a lump-sum turnkey Engineering, Procurement and Construction (EPC) contract.. The project cost US$968 millions and is being financed by $319 millions dollars of equity provided by the shareholders and $649 millions of debt comprising commercial, Italian and French export credit facilities provided by a group of 22 international and regional banks."

Previous Stories:
  Omani bank seeks joints ventures in India   (8/22/2001)
  Oman and India will establish fertilizers factory next year   (7/1/2000)

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