Omani group backs fertilizer expansion

MUSCAT, AUGUST 26
An agreement has been signed to expand the ammonia-urea complex of the Algerian-Omani Fertilizer Company (AOA) complex at Arzew in the Algerian port city of Oran - a move that strengthens the North African country’s capacity to convert natural gas into higher-value fertiliser products.
The expansion will involve the installation of a third ammonia-urea production train and is expected to increase the overall production capacity of the complex by 50 per cent. Algeria has also committed to providing the additional natural-gas feedstock required to support the expanded operations.
The agreement was reached earlier this week during a meeting between Algerian Minister of State and Minister of Hydrocarbons Mohamed Arkab and Shaikh Saad Suhail Bahwan, Chairman of Oman’s Suhail Bahwan Holding Group, the Omani partner in AOA. Oman’s ambassador to Algeria, Saif bin Nasser Al-Badai, Sonatrach Chief Executive Nour Eddine Daoudi and senior officials also attended the meeting.
The parties agreed on an action plan to move the project into its implementation phase and mobilise the resources required for construction. Arkab pledged the ministry’s support to accelerate execution and address potential obstacles so that the expansion proceeds according to schedule.
Located at Mers El Hadjadj in the Arzew industrial zone near Oran, AOA was established in 2008 as a 51:49 joint venture between Suhail Bahwan Group and Algeria’s state-owned energy company Sonatrach. The project represented an estimated investment of around $2.4 billion.
The plant began commercial operations in December 2017 and has since developed into a significant nitrogen-fertiliser producer and export platform. Its product portfolio comprises ammonia and granular urea, serving both the Algerian market and international customers.
AOA’s existing production configuration has a nominal capacity of around 4,000 tonnes per day of ammonia and 7,000 tonnes per day of granular urea. In 2024, the complex was reported to have produced more than 2.4 million tonnes of urea and 1.35 million tonnes of ammonia, underscoring its importance to Algeria’s fertiliser industry.
Around 90 per cent of AOA’s urea output is exported, with the balance supplied to the domestic market. The plant therefore represents an important source of non-hydrocarbon export earnings for Algeria, transforming domestically available natural gas into higher-value industrial products for international markets.
The planned expansion is expected to further strengthen that role while increasing AOA’s contribution to Algeria’s fertiliser production and export capacity.
The expansion also reflects a broader effort by Algeria to deepen domestic hydrocarbon processing and promote industries capable of generating greater value from its natural resources. For the two partners, the project provides a platform for combining Algeria’s natural-gas resources with Omani private-sector investment and industrial expertise.