Muscat: India is set to remain the principal destination for urea exports from Oman India Fertiliser Company (OMIFCO) following its landmark initial public offering (IPO), according to details disclosed in the company’s prospectus.
The prospectus highlights OMIFCO’s long-standing strategic role in supporting India’s fertiliser requirements and outlines new arrangements that will secure substantial export volumes to the Indian market well into the next decade.
Over the past decade, Oman ranked among India’s largest urea suppliers under a long-term Government of India offtake agreement covering around 2 million tonnes annually. Although exports declined after the expiry of that arrangement, falling to an estimated 1.2 million tonnes in 2021, volumes were subsequently supported through a three-year supply contract covering the 2022–2025 period, supplemented by additional sales facilitated by OQ Trading.
The prospectus states that a new urea offtake arrangement with OQ Trading, effective from February 2026, will further strengthen OMIFCO’s position in India. Under the arrangement, 1 million tonnes of urea per year—equivalent to roughly half of the company’s total production—will be supplied under a Government of India offtake programme. OQ Trading also intends to place an additional 500,000 tonnes annually into the Indian market.
The combined volumes will ensure that India continues to account for the majority of OMIFCO’s urea exports, reinforcing the strategic economic links between Oman and one of the world’s largest fertiliser-importing nations.
OMIFCO’s prospectus attributes this competitive position to a combination of low production costs, efficient logistics and favourable geographic proximity to India.
The company’s fertiliser complex at Sur benefits from modern, world-scale production facilities and competitive natural gas pricing under its supply agreement with Integrated Gas Company (IGC).
According to the prospectus, OMIFCO is positioned within the second quartile of global urea exporters in terms of cost competitiveness, supported by gas-efficient operations and direct access to export infrastructure.
Importantly, OMIFCO enjoys what the prospectus describes as an “advantaged” position in serving the Indian market. Its port-based facility can load vessels of up to 55,000 deadweight tonnes, while the short shipping distance across the Arabian Sea enables lower freight costs and faster transit times to major ports on India’s west coast.
As a result, the landed cost of OMIFCO’s urea in India is lower than that of many competing exporters.
The prospectus notes that several producers with potentially lower production costs often prioritise higher-value domestic or regional markets and therefore do not regularly compete in India. Others face substantial inland transportation costs before reaching export terminals. In contrast, OMIFCO’s integrated port-side location minimises inland logistics expenses, providing a structural advantage in serving India.
The company also benefits from the international reach of OQ Trading, one of the world’s leading traders of ammonia and urea. With trading hubs in Houston, London, Rotterdam, Shanghai and Singapore, OQ Trading provides OMIFCO with extensive market access, logistical flexibility and enhanced commercial opportunities.
The prospectus further notes that OMIFCO’s production remains backed by long-term offtake agreements with OQ Trading, Kisan International Trading and OQ Marketing, providing a stable commercial framework as the company prepares for its public market debut.
The IPO, which opens for subscription on June 16, is expected to be one of the most significant listings on the Muscat Stock Exchange in recent years and forms part of the broader divestment programme being pursued by the Oman Investment Authority.
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