OQBI Signs Ammonia Offtake Agreement with Deepak Oman: Key Opportunities for Investors and Business Growth
OQ Base Industries Signs Long-Term Ammonia Supply Agreement with Deepak Oman Industries
Muscat, December 15 – OQ Base Industries (SFZ) SAOG (OQBI), a subsidiary of OQ Group, has finalized a long-term Ammonia Offtake Agreement with Deepak Oman Industries LLC (SFZ).
Under this agreement, OQBI, which is publicly traded, will supply ammonia to Deepak Oman Industries for use in manufacturing value-added chemical products. The contract extends up to ten years, with an option to prolong for an additional three years, ensuring a stable and sustainable source of feedstock to support Deepak Oman’s industrial operations.
“This agreement highlights OQBI’s dedication to advancing Oman Vision 2040 by promoting industrial diversification and enhancing value-chain localisation within the Sultanate’s petrochemical sector,” said Ihsan al Jandal, Chief Operating Officer of OQBI.
He added, “It further reflects OQBI’s continuous commitment to fostering sustainable growth, increasing in-country value, and strengthening strategic partnerships across Oman’s energy and industrial sectors,” as stated in a disclosure to the Muscat Stock Exchange.
Deepak Oman Industries, supported by India’s prominent chemical manufacturer Deepak Nitrite Limited, is establishing an integrated chemicals facility in the Salalah Free Zone. This plant will produce inorganic chemical products, including calcium chloride and sodium nitrate, utilizing local raw materials such as ammonia and limestone.
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This long-term ammonia supply agreement between OQ Base Industries and Deepak Oman Industries represents a strategic alignment with Oman Vision 2040, emphasizing industrial diversification and value-chain localization. For businesses, it signals new opportunities in petrochemical and chemical manufacturing sectors, while smart investors should consider the growing potential of integrated chemical production in free zones as a key area for sustainable growth and strategic partnerships.
