Oman withdrawn from Iran’s petrochemical project

Baku, Azerbaijan, March 19 By Fatih Karimov - Trend: Oman Oil Company has been withdrawn from a petrochemical project in Iran, the Mehr News Agency reported on March 18. The National Iranian Petrochemical Company has canceled a deal with Oman Oil Company for building Hormoz urea and ammoniac production unit in Assalouyeh, southern Iran. The project has been transferred to an Iranian company, Mehr said, but did not refer to the name of the company. Iran and Oman signed a memorandum of understanding in August 2009 to jointly construct Hormoz urea and ammoniac production unit. In February 2011, Iran set a two-month deadline for Oman Oil Company to fulfill its obligations over the project. The petrochemical unit was projected to annually produce around one million tons of ammoniac and 650,000 tons of urea. However, Oman signed an initial agreement with Iran on March 12 to build a $1 billion submarine pipeline to import gas from the Islamic republic, Oman's oil and gas minister said, AFP reported. The agreement was reached on the first day of a visit by Iranian President Hassan Rouhani, aimed at boosting ties between Tehran and its Gulf ally, and easing tension with other Gulf States. It follows a memorandum of understanding signed in 2009 to build a 200-kilometre (124-mile) undersea pipeline. The project should be completed by the end of 2017 and will cost around $1 billion (721 million euros). Follow us on Twitter @TRENDNewsAgency