Nexant Selected for OMIFCO Expansion Pre-Feasibility Study: Key Opportunities for Investors and Business Growth in Oman
MUSCAT, JUNE 13 – The Oman India Fertiliser Company (OMIFCO) has commissioned US-based consulting firm Nexant to conduct a pre-feasibility study on expanding its ammonia–urea production complex located in eastern Oman. This development was revealed in OMIFCO’s recently published prospectus ahead of its Initial Public Offering (IPO), which will see the company divest a 25% equity stake to both institutional and retail investors via the Muscat Stock Exchange (MSX).
OMIFCO currently operates a two-train ammonia–urea facility in Sur, with an ammonia production capacity of 3,500 tonnes per day, equivalent to around 1.15 million tonnes annually, and a urea production capacity of 5,060 tonnes per day, approximately 1.65 million tonnes per year.
The Nexant study explores a base case scenario that involves constructing a third production train using conventional ammonia–urea technology. This expansion aims to maximize the use of existing infrastructure, utilities, and logistics, thereby enhancing capital and operational efficiencies.
The proposed increase would add 3,500 tonnes per day of ammonia capacity and 6,212 tonnes per day of urea capacity, representing a significant boost over current production levels. The capital expenditure for this expansion is estimated at approximately US$2.9 billion, with an accuracy range of ±50%.
Nexant’s analysis highlights the strategic benefits of the expansion, noting OMIFCO’s consistent track record of operating above nameplate capacity and its well-established access to key export markets, especially India, which maintains strong structural demand for urea imports. According to projections, by 2050, assuming two world-scale urea plants with a combined output of about 2.05 million tonnes per annum and OMIFCO exporting 60% of its production to India, the company could fulfill nearly 6% of India’s total urea import demand. Despite this, OMIFCO would remain a relatively modest player within India’s expansive import market, supporting long-term demand absorption.
The prospectus emphasized that the expansion is contingent on securing long-term natural gas feedstock. OMIFCO has formally requested gas allocation from the state-owned Integrated Gas Company (IGC) and is awaiting confirmation. Subject to securing gas supply and finalizing technology licensing, project management, and construction contracts, the third train would substantially raise OMIFCO’s production capacity and reinforce its position as a dependable global supplier of nitrogen fertilizers.
تحليل خاص من عمانت | تصفح سوق عُمان
The proposed expansion of OMIFCO’s ammonia-urea complex signals a major growth opportunity for Oman’s industrial sector, leveraging existing infrastructure to enhance output efficiently. Businesses and investors should eye the strategic positioning in India’s robust fertilizer market, while closely monitoring the securing of long-term natural gas supplies, which is critical to project viability and operational scalability. This move could solidify Oman’s role as a key global nitrogen fertilizer supplier, but also introduces risks tied to feedstock dependency and capital costs, demanding careful risk management.
