Iran and Oman signed a memorandum of understanding on Wednesday to jointly construct Hormoz urea and ammoniac production unit in the South Pars region, northern Iran.
Iranian Oil Minister Gholam-Hossein Nozari and Omani Commerce Minister Maqbool bin Ali Sultan inked an MoU, the Islamic Republic of Iran News Network reported.
"The petrochemical unit is projected to annually produce around one million tons of ammoniac and 650,000 tons of urea," the Mehr News Agency quoted Nozari as saying.
"The project is estimated to cost $800 million which will be financed on a 50-50 basis by both sides," he added.
Omani ruler Sultan Qaboos bin Said, heading a high-ranking delegation, arrived in Tehran on Tuesday to hold talks on regional issues and discuss ways to expand ties between the two countries.
During the Omani delegation's visit to Tehran, the two sides signed 7 cultural, political, and economic memorandums of understanding.
"Oman has requested for importing some 2 billion cubic feet of natural gas from Iran to feed its LNG production units," Nozari said, adding that negotiations are underway in this regard, so that the two sides are close to reach final agreement.
Previously, National Iranian Gas Export Company's Managing Director Seyyed Reza Kasaeizadeh had reported that Oman has requested to develop Kish gas field to deliver the produced gas to their LNG units.
Kish gas field is a giant gas field close to the Kish Island in the Persian Gulf.
It was discovered in 2006 and holds 59 trillion cubic feet of in-situ gas reserve, of which 45 trillion cubic feet is recoverable. The field also holds 946 million barrels of condensate of which 331 million barrels are recoverable.