BankMuscat has signed a strategic agreement with Oswal Group Global to act as the exclusive financial adviser for its $350-400 million caustic soda project in Salalah Free Zone, said a report.

The feasibility study on the project and technology selection has been successfully completed and the construction is likely to start in the fourth quarter of 2010, the Oman Daily Observer reported.

AbdulRazak Ali Essa, chief executive of BankMuscat, said the bank remained committed to supporting the industrial development in Dhofar region.

"We are quite impressed with the Oswal Group’s success in their Burrup Fertilisers project and hope the Oman project will also be extremely successful. We look forward to a long and fruitful relationship with Oswal Group Global," he noted.

Pankaj Oswal, chairman and managing director of Oswal Group Global, said, "The financial advisory mandate agreement marks an important milestone in the development of the caustic soda project, bringing Oswal Group Global into partnership with one of the region’s strongest banks which possesses a wealth of experience in project advisory in Oman."

The Oswal group has a diversified portfolio of assets valued at over $3.5 billion including Burrup Fertilisers, the world’s largest single train merchant ammonia plant based in Western Australia, plus interests in petrochemicals, resources, transport and logistics, property and lifestyle.

"We look forward to building a strong working relationship with BankMuscat and also with the local Salalah business community," he added.

Oswal Oman Caustic will initially be promoted and operated by Oswal Group Global who have extensive experience in the construction and operation of chemical plants as well as resources and logistics, the report said.