India and Oman will break the ground on Wednesday on $1-billion fertiliser plant in the Omani port city of Sur, the Indian ambassador here said on Sunday. The project, which was announced in 1993, will supply India with 1.65 million tonne urea and about 250,000 tonne surplus merchant grade ammonia every year, Talmiz Ahmed said.

Two Indian state-run firms are each to hold 25 per cent equity in the Oman India Fertiliser Co, while Oman Oil is to control the remaining 50 per cent. All the plants fertiliser production is to be bought by India for at least 10 years at predetermined prices.

The plant will be supplied with about four million cubic meters of Omani gas per day, according to Mr Ahmed.

He said the plant would be built by an engineering consortium led by Italys Snamprogetti and Frances Technip with $320 million in equity funding and $649 million in debt.

AFP