13/10/2015 07:40 AST
Oman India Fertiliser Company’s (Omifco) plans to double its production capacity with a debottlenecking scheme and a third train in Sur hangs on government decision to supply additional gas.
The company, a $960 million-joint venture equally owned by Oman Oil Company and India’s two fertiliser firms, plans to build a third train and implement a de-bottlenecking project, which together will almost double the existing urea capacity from 1.652 million tonnes to more than 3 million tonnes per annum.
“We are ready with the project and are waiting for additional gas from the government of Oman. The government is positive on the plan. As soon as the gas is available, we will proceed with the project,” said S G Gedigeri, chief executive officer of Omifco. He was talking to journalists on the sidelines of Oman-India investment meet organised by Ithraahere on Monday. The additional natural gas requirement for de-bottlenecking project alone (which will enable to enhance production by 30 per cent) will be 0.8 million standard cubic meters per day.
Presently, Omifco has two identical plants of 2,530 tonnes per day each of urea and two identical plants of 1,750 tonnes per day each of ammonia at Qalhat in Sur. As much as 80 per cent of ammonia production is used for manufacturing urea.
Gedigeri said the company anticipates the total production of urea to touch 1.92 million tonnes this year. He also noted that the increase in natural gas price, which was implemented in 2012, would not affect the net earnings of Omifco since the company has long-term offtake arrangements and the additional costs are passed on to the customers.
The volume of urea sold at market price is only around 15 per cent of total production — which is output above 1.65 million tonnes a year. Price of urea in international markets is hovering around $250 per tonne.
Projected revenue, profit
The Omifco chief added that the anticipated revenue and profit of the company this year are close to $300 million and $30 million, respectively.
Omifco started selling urea in the local market almost three years ago, after setting up a bagging unit within the complex. The domestic sales, which meet the entire demand of Oman, are close to 20,000 tonnes per annum.
The company’s cumulative production of urea was 19.8 million tonnes, ever since it started operation.
Omifcohas performed well since it started commercial production more than a decade ago.
Investment meet
Prominent Indian companies begin a two-day investment visit to Oman on Monday.
The visit started at Muscat’s Hormuz Grand Hotel with His Highness Sayyid Faisal Al Said, Ithraa’s director general for Investment Promotion opening a one-day invest in Oman meeting which will see 50 leading Omani organisations network with Indian counterparts.
Attended by Indra Mani Pandey, India’s Ambassador to the Sultanate, Monday’s meetconsisted of a series of presentations delivered by Ithraa; the Public Establishment for Industrial Estates; Port of Salalah; SoharPort and Freezone; Special Economic Zone Authority at Duqm; Oman Investment Fund; Larsen & Toubro and the Oman Indian Fertiliser Company.
“Building on our successful visit to India in August, we have organised, in partnership with key stakeholders, this important follow-up meeting to strengthen investment and trade ties with India. Indeed, by working together our two countries can achieve great things,” remarked Sayyid Faisal
Oman and India enjoy a longstanding and strong relationship, one that dates back centuries. This year, the two nations celebrate the 60th anniversary of the establishment of diplomatic ties.
“Our warm and cordial relations are based on mutual trust and respect. We are linked by geography, trade, history and culture and collaborate in agriculture, healthcare, infrastructure, tourism, chemicals and fertili
Times of Oman
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