Iran is looking for a new partner to replace Oman in its $800 million Hormuz urea fertilizer plant, a senior official with Iran's National Petrochemical Company said this week.
The 50:50 joint venture between the Oman government and the NPC has been in limbo as Oman has been reluctant to proceed with the project since it inked an agreement with NPC in August 2009.
"We are looking for a partner to replace Oman," the NPC official said.
He declined to name possible partners but said they could be European or Asian companies.
In February this year, NPC gave a two-month ultimatum to the Oman government to decide if it wanted to proceed. Having received no response for more than three months, NPC project director Ahmed Heydarnia last week again asked the Omani government to clarify its stand. There has still been no reply.
The project is designed to have a capacity to produce 1 million mt/year of urea and 600,000 mt/year of ammonia.
Meanwhile, Iran is also negotiating with local Iranian companies to replace India's Sab Industries in a 1.035 million mt/year fertilizer joint venture called Lavan Petrochemical Company.
Sab industries pulled out of the joint venture last week without giving any reasons.
The venture when complete, would produce 860,000 mt/year of urea and 175,000 mt/year of ammonia.
Originally, Sab had a 53% stake in the project. NPC held 20%, Iranian joint stock company Arak Petrochemical Company held another 20% and the Bank Melli Iran Investment Company had 5% stake in the project.
