Work has begun on two projects with a combined value of $1.25bn (OMR480.8m), which are expected to spur Oman's economic diversification goals. 

Oman Oil Company (OOC) celebrated the laying of the foundation stone for the Salalah Liquefied Petroleum Gas (SLPG) and the Salalah Ammonia Plant (SAP) projects in the Dhofar governorate. 

READ: Oman Oil Company to break ground on two plant projects

Both developments are considered strategic priorities for Oman, helping to develop its industrial sector, and enhance its diversification plans. 

Worth $826m (OMR318m), SLPG will span 20ha within the Salalah Free Zone (SFZ), and is due to be fully operational in 2020. 

LPG and condensate storage facilities will be built at the nearby Port of Salalah, over an area of 8ha. 

Oman Gas Company will develop the project, with the UK's Petrofac set to implement engineering, procurement, and construction (EPC) works. 

Meanwhile, SAP will be supervised by Salalah Methanol Company, a subsidiary of OOC, and is valued at $463m (OMR178.2m). 

Spanning 12ha within SFZ, the development will include facilities for the production, storage, and export of ammonia products. 

Construction work for SAP is expected to complete in 2020. 

The foundation ceremony was held under the auspices of Dr Mohammed bin Hamad al- Rumhy, Oman's Minister of Oil and Gas and chairman of OOC, in the presence of Sayyid Mohammed bin Sultan al- Busaidi, Oman's Minister of State, and Governor of Dhofar.