Speaking on the occasion, Union Minister for Chemicals and Fertilizers, Shri S.S. Dhindsa said that the Urea Off-Take Agreement will provide India with a reliable and long-term source of urea. This project is an indication of the close relationship and friendship that exists between Oman and India, he added.

        Under the Off-Take Agreements, the Government of India and IFFCO will commit to buy all OMIFCO’s urea and surplus ammonia production at pre-agreed fixed prices for a fifteen and ten year period respectively. Under the Gas Supply Agreement, the GOO will supply gas to the project for 20 years, at fixed prices for the first 10 years and at a pre-agreed escalation for the remaining 10 years. The initialling of these key agreements is a significant milestone for the project and will facilitate early financial close.

        OMIFCO is a US$ 969 million project company whose shareholders are Oman Oil Company (50%), Krishak Bharati Cooperative Limited (KRIBHCO) (25%) and Indian Farmers Fertilizers Cooperative (IFFCO) (25%). The project to produce 1.65 million metric tons of granulated urea and 0.25 million metric tons of surplus ammonia per year will be built by Snamprogetti of Italy and Technip of France under a Lump Sum Turnkey Contract. The funding requirements will be met with US$ 320 million of equity and US$ 649 million of debt. About half the debt component is likely to be covered by Export Credit Agencies.

        OMIFCO has selected ANZ Investment Bank, Arab Banking Corporation Group and BNP Paribas as Arranging Banks. The Arrangers are considering approaching the bank market with the required financing soon after their formal approvals and those of the ECAs.