MUMBAI, February 6: Oman India Fertilizer Company, a joint venture between Oman Oil Company (OOC) of Oman and Rashtriya Chemicals & Fertilizers (RCF) and Khribhco of India, came into being as its board was constituted on Thursday. OOC director Salim Hassan Macki is the first chairman of the company. Besides him, there are 5 members in the board. The chairmanship is on a one-year rotation basis, sources said.The Indian representatives on the company board include fertiliser secretary Anil Kumar, RCF chairman & managing director DK Varma and Khribhco managing director PP Singh. The other members are Malik Al Adawi and Ivor Berressford. The board was constituted at the last meeting of the joint management committee (JMC) of Oman India Fertilizer Company in Mumbai.
The Indian partners -- RCF and Kribhco -- together hold 50 per cent of the equity, while the balance 50 per cent is held by Oman Oil Company. The project is financed through a debt-equity ratio of 3:1. The equity part of $280 million is equallyshared between the Indian partners and the OOC.
Work on the project is expected to start by the middle of the calendar year. It will take 33 months for the project to go on stream. The plant will produce 3,600 tpd of ammonia and 4,400 tpd of granulated urea. The entire urea produce will be lifted by the Indian partners as per the agreement.
Export credit agencies, Face of Italy and Coface of France, and four foreign commercial banks have evinced interest in financing the $840 million debt portion of the $1.2 billion Oman India Fertiliser project coming up at Oman.
Other details regarding the urea offtake agreement and the gas supply agreement have already been finalised. Gas will be supplied to the JV company. While the price of the gas in the first decade has been reached, that in the next decade will be linked to the urea price and inflation in Oman.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
