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US Secretary of State John Kerry speaks to the US embassy staff in Muscat on Wednesday, as he wraps up a visit to Oman that aimed to help finalise an estimated 2.1 billion dollar deal to supply a US-made air-defence system to the Gulf nation. Image Credit: AFP

Muscat: Oman’s defence minister has said that his country needs the defence system whose potential purchase has brought US Secretary of State John Kerry to the country.

Minister Responsible for Defence, Sayyid Badr Bin Saud Al Busaidi, said talks were under way to finalise the $2.1 billion (Dh7.71 billion) deal in which Oman will purchase a ground-based air defence system from US defence contractor Raytheon Co.

The Omanis believed it was “the best and most effective system that is out there,” Al Busaidi said, adding that it was in line with the defence strategy of the Gulf Cooperation Council (GCC).

“Talks are under way at this point, and we are at the technical stages but we are hoping to move to the final discussion and sign a contract,” he added.

“We are in need of this defence system, which also pertains to the defence strategy of the other countries of the Gulf Cooperation Council.”

US Secretary of State John Kerry hailed the deal. “I wanted to come here to be able to thank you and to celebrate with you the Raytheon initiative for the $1.6 billion dollar ground based air defence system which Oman is going to put in place,” Kerry said as he met Al Busaidi. “We are ... very grateful for your confidence in Raytheon.”

The new top US diplomat had strongly backed the proposed deal before he took office in February.

“Part of the goal of this is to push US commercial interests, to demonstrate to Oman that these are important to this administration,” another US official had said before Kerry arrived in Oman on Tuesday.

US officials had earlier said that it was expected that the letter of intent would be signed in Muscat on Wednesday.

Kerry also met with Oman’s Sultan Qaboos on Tuesday and told US embassy staffers at a meeting the next day that he had appreciated his insight into moves to bring the Israelis and the Palestinians back to the negotiating table.

A senior US State Department official said on Wednesday the deal’s value was in fact expected to be $2.1 billion, as US officials had previously estimated, though the exact size and content were still under negotiation.

Oman and Raytheon did not sign a letter of intent for the arms deal during Kerry’s visit in contrast to the predictions of US officials earlier this week.

“The letter of intent will be signed soon, but they are still finalising technical details,” said the senior State Department official, who spoke on condition of anonymity.

In a joint statement released at the end of Kerry’s visit, the United States and Oman said negotiations with Raytheon were in the final stages and “a final conclusion of the deal is expected following agreements on the technical aspects of the system, through life support and maintenance and other related matters”.

The ground-based air defence system would help protect Oman against cruise missile, drone or fighter aircraft attacks.

Part of the sale has been previously disclosed. In October 2011, the US Defence Department notified Congress of a proposed $1.25 billion sale of Avenger fire units, Stinger missiles and Advanced Medium Range Air to Air Missiles to Oman.

Under the US system, such sales are typically disclosed to Congress, which has the right to reject them, long before a final contract is signed. The signing of a letter of intent is only one further step along the way to a final deal.

From Oman, which sits opposite Iran on the strategic Strait of Hormuz, Kerry flies to Amman, Jordan, for talks with Western and Arab states about how he hopes to bring Syria’s government and opposition together for peace talks to try to end their more than two-year civil war.

- with inputs from Reuters and AFP