The Sultanate of Oman and Sohar International Urea and Chemicals Industries Company signed on Wednesday several agreements on establishing a fertilizers factory project in the wilayat of Sohar.
Ahmed bin Abdul-Nabi Macki, Oman's Minister of National Economy and Deputy Chairman of the Financial Affairs and Energy Resources Council, Maqbool bin Ali Sultan, Commerce and Industry Minister, Sheikh Mohammed bin Abdullah al Harthy, Transport and Communications Minister and Nassir bin Khamis al Jashmi, Oil and Gas Ministry Undersecretary signed the agreements to provide the factory with government services such as cooling water, land usufruct and natural gas used in production operations and other services offered by the Sohar industrial port. Sheikh Suhail bin Salim Bahwan, Project owner signed the agreement on behalf of Sohar International Urea and Chemicals Industries Company.
Sheikh Suhail also signed several financing agreements with Japan International Cooperation Bank and HSBC which will offer the company a finance loan of US$ 440 million.
According to the agreements, Sohar Company will establish a fertilizers factory with a cost of US$ 650 million to produce 1,225 million tonnes of Urea annually.
Macki stressed the importance of this project, saying it is the first initiative of its kind by an Omani investor. He added such projects will help stimulate cycle of the Omani economy.
According to ONA, Maqbool said this gas based project will help expand and develop the Omani economy, increase job opportunities for Omanis and enhance Omani exports to other countries of the world.
Sheikh Suhail said the construction works of the projects were awarded to Mitsubishi Heavy Industries Company, which will implement it within 30 months. The factory production will be sold to the US Trans Ammonia Company in accordance with a 12 year long contract.
