- OQ Base Industries signs long-term ammonia offtake deal with Deepak Oman.
- The agreement ensures sustainable feedstock for value-added chemical production.
- Pact supports Oman Vision 2040 and strengthens Oman–India industrial ties.
OQ Base Industries (SFZ) SAOG (OQBI), part of OQ Group, has declared the signing of a long-term Ammonia Offtake Agreement with Deepak Oman Industries LLC (SFZ). As per the agreement, OQBI, which is publicly traded, will provide ammonia to Deepak Oman Industries for its value-added chemical production.
The agreement lasts for a maximum of ten years, featuring an option for a three-year extension, guaranteeing a consistent and sustainable feedstock supply to bolster Deepak Oman’s activities. “This agreement underscores OQBI’s commitment to supporting Oman Vision 2040, fostering industrial diversification and promoting value-chain localisation within the Sultanate of Oman’s petrochemical sector”, said Ihsan al Jandal, Chief Operating Officer, OQBI.
“It further demonstrates OQBI’s ongoing efforts to enable sustainable growth, enhance in-country value and strengthen strategic partnerships across Oman’s energy and industrial ecosystem, he added in a filing to the Muscat Stock Exchange.
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Deepak Oman Industries, supported by Deepak Nitrite Limited, a prominent chemical manufacturer in India, is establishing a comprehensive chemicals plant at Salalah Free Zone. The facility will manufacture inorganic chemical products such as sodium nitrate and calcium chloride, utilizing locally sourced materials such as ammonia and limestone.
The pact is anticipated to bolster industrial relations between Oman and India, improve supply-chain robustness, and aid downstream chemical sectors, while solidifying Salalah Free Zone’s status as an emerging center for petrochemicals and value-added production in the area. The collaboration supports regional sustainability objectives, fosters export-driven manufacturing, and establishes enduring prospects for technology transfer, job creation, and industrial development within Oman’s chemical industry.