Oman and India broke ground on $1 billion fertiliser plant in the port city of Sur last month.

The project, which was announced in 1993, will supply India with 1.65 million tonnes of urea and about 250,000 tonnes of surplus merchant grade ammonia every year, according to the Indian ambassador Talmiz Ahmed.

Oman Oil will control 50 per cent of the equity in the Oman Indian Fertiliser Company, while two Indian state-run firms will hold 25 per cent equity each.

The plant's entire production is to be bought by India for 10 years at predetermined prices.
The plant will be built by an engineering consortium led by Italy's Snamprogetti and France's Technip, with $320 million in equity funding and $649 million in debt.