Iran: also the fertilizer industry is feeling the heat of the sanctions

Iran’s National Petrochemical Company (NPC) said it is looking for a new partner to replace Oman in its $800 million Hormuz urea fertilizer plant, in Assalouyeh, southern Iran.
The 50:50 joint venture between the Oman government and the NPC has been in limbo as the Oman Oil Company (OOC) has been reluctant to proceed with the project since it inked an agreement with NPC in August 2009. In February 2011, 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 May again asked the Omani government to clarify its stand. There has still been no reply by the wholly owned by the Government of the Sultanate of Oman company.
The project was designed to have a capacity to produce 1 million mt/year of urea and 600,000 mt/year of ammonia.
The NPC is also feeling the political heat in another project, a fertilizer joint venture called Lavan Petrochemical Company. Sab industries pulled out of the joint venture last May. 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.
The fertilizer project was expected, once finished, to produce 860,000 mt/year of urea and 175,000 mt/year of ammonia.

Advertisements
%d bloggers like this: