Sonatrach, SBGH form Algeria fertilizer JV

10 March 2008 10:32  [Source: ICIS news]

DUBAI (ICIS news)--Algeria’s Sonatrach and Suhail Bahwan Holding (SBGH) of Oman have announced the formation of a joint venture to build a fertilizer plant in Algeria, it said.

 

The project would be located in the Arzew industrial zone and was set to produce 7,000 tonnes/day of urea and 4,000 tonnes/day of ammonia, the company said late on Sunday.

 

The newly established joint-venture company was called El Djazairia El Omania Lil Asmida (Algerian-Omani Fertilizer Company), with Bahwan holding a 51% stake and Sonatrach the remainder, it added.

 

To fund the project, local Algerian banks would arrange a loan covering an estimated 65-70% of the cost, with the remainder would be covered by funds of the two partners, the company said.

 

Meanwhile, SBGH is constructing another urea plant in Oman, with a capacity of 3,500 tones/day, which will go on stream in the second half of 2008.

By: Abdelghani Henni
65 6780 4359

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