OQ, OMIFCO ink million tonnes granular urea deal

This agreement will expand OQ’s supply and trading portfolio into the nitrogen fertiliser market

First vessel completed loading 49,500MT of granular urea on its way to Brazil.
First vessel completed loading 49,500MT of granular urea on its way to Brazil.

OQ, via its commercial arm OQ Trading, recently signed a three-year agreement with OMIFCO to offtake and trade one million metric tonnes per annum of granular urea.

OQ’s supply and trading business will be lifting the urea from OMIFCO’s captive terminal in Sur, Oman, in bulk carriers and delivering it to end-users in international markets such as India, Sri Lanka, Pakistan, the United States, Brazil, Vietnam, Thailand and China. The new agreement between the two companies commenced on the 1 August 2020, and the first vessel with 49,500 metric tonnes departed to Brazil on the 2 August 2020.

OMIFCO has positioned itself strategically in the urea and ammonia market globally, and we are quite proud of that. Now, we have a great opportunity ahead of us, targeting new markets for the Omani urea,” said Talal Al Awfi, chief executive, commercial, OQ.

This agreement will expand OQ’s supply and trading portfolio into the nitrogen fertiliser market, complementing its existing dry bulk portfolio, whilst leveraging its mature logistics and risk management capability as well as its strong industry network. An additional agreement also saw the debut of Urea Oman in the local market, being marketed under the OQ brand, once again expanding OQ’s robust portfolio of energy and petrochemical products.

“We are pleased with the achievements that OMIFCO has accomplished during its first 15 years. OMIFCO has enhanced its mandate and enabled its growth, not just as a supplier for its founding companies, but also to offer high-quality urea and ammonia products to the rest of the world,” said Hilal Al Kharusi, chairman of OMIFCO.

Celebrating its 15th anniversary this year, OMIFCO is a joint venture between OQ (50%), Indian Farmers Fertiliser Cooperative Limited (25%), and Krishak Bharati Cooperative Limited (25%). It was established as a strategic initiative between the Omani and Indian governments to construct, own and operate a modern, world-scale ammonia-urea fertiliser manufacturing plant in Sur, Oman. OMIFCO plays a critical role in strengthening the relationship between the two countries, and meeting Oman's vision to diversify the Omani economy.

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