Oman, Pakistani Firm To Develop Fertilizer Complex In Oman

Society Pakistan & World Affairs
1

New co-operation deal b/w Oman and Pakistan :slight_smile:

SOURCE: Oil & Gas Journal

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.

2

good news that a pakistani chemical company making to the foreign markets directly.

will the cost be as low as its in pakistan?

3

[QUOTE]
*Originally posted by Shak killS: *

will the cost be as low as its in pakistan?
[/QUOTE]

I bet not.

Govt. should make profit!

4

This could be beneficial but it depends on how much of the money the Pak company gets out of the investment. Yet also if the company will move abroad, will they create another company in Pakistan with the money. I dont see this as being a good idea, unless the revenue we earn abroad is more than the social welfare the people would get from creating jobs and oppurtunities for work in Pakistan which has a very high unemployment rate. Then dont forget if the revenue would be distributed among the Pakistani people or the people of oman. This is not a good idea if you wish to employ the pakistani people and help build on the existing economy.