By an OGJ correspondent
MUSCAT, Nov. 4 -- Oman Oil Co. (OOC) has signed a memorandum of understanding with Karachi-based Engro Chemical Pakistan Ltd. to develop a world scale ammonia urea fertilizer complex in Oman. According to Engro Chemical's management, the project will be set up as a joint venture, utilizing Oman gas and Engro's experience in building and operating cost effective plants.
The JV envisages relocating and updating an existing ammonia plant and constructing a new urea plant and associated utilities.
The plant is being sized to produce 650,000 tonnes/year of urea for placement in global markets as well as Pakistan.
The JV proposes to put the project on a fast track and is targeting completion of detailed technical and economic feasibility studies by mid-2003.
OOC, a commercial company, is 100% owned by the government of Oman. The company was created in 1992 to provide the government with a vehicle to pursue investment opportunities both inside and outside Oman.
The proposed project, Engro Chemical's first overseas venture, represents a major industrial undertaking by a Pakistani entity outside the country, the company said.
Engro Chemical's management expressed confidence that the venture would be successful, thereby opening doors integrating the company and Pakistan into the global economy.